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Bellingham Division has a required rate of return by corporate headquarters of 2096. The weighted average cost of capital is

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Answer #1

Beginning Investment = 220000

Ending Investment = 190000

Average equity = (220000+190000/2) = 205000

Operating income = 19000

ROI = Operating income/Average investment = 19000/205000 = 9.3%

So answer is c) 9.3%

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