ACCA PM · Chapter 14 · Question 1 of 10
Division D has capital employed of $4,000,000 and controllable profit of $640,000. The company's cost of capital is 12%. What is the division's return on investment (ROI)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 16%
Explanation
ROI = controllable profit / capital employed = $640,000 / $4,000,000 = 16%.
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