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The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands)....

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $5,100,000 Operating income $510,000 Total assets $3,000,000 Current liabilities $260,000 Management's target rate of return is 24% and the weighted average cost of capital is 18%. What is the Top Hat Division's Return on Investment (ROI)? 5.10% 17.00% 170.00% 10.00%

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Answer #1

Top Hat Division's Return on Investment (ROI) = Operating Income /Sales

510,000/5,100,000

ROI =10%

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