The West Division of Cecchetti Corporation had averageoperating assets of $643,000 and net operating incomeof $100,000 in August. The minimum required rate ofreturn for performance evaluation purposes is 18%. Whatwas the West Division's minimum required return inAugust?

Given:Average operating assets = $643,000Net operating income = $100,000Minimum required rate of…

Answered: The West Division of Cecchetti…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The West Division of Cecchetti Corporation had average operating assets of $643,000 and net operating income of $100,000 in August. The minimum required rate of return for performance evaluation purposes is 18%. What was the West Division's minimum required return in August?