YZ Company has two divisions, A and B. Information for each division is as follows A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Operating Margin (ROS) 10% 20% Weighted average cost of capital 12% 12% What is the return on investment for A? 18% 40% 20%
XYZ Company has two divisions, A and B. Information for each division is as follows
A B
Net earnings for division P 40,000 P 260,000
Asset base for division P100,000 P1,200,000
Target
Operating Margin (ROS) 10% 20%
Weighted average cost of capital 12% 12%
What is the
- 18%
- 40%
- 20%
- 15%
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