Asked by Timyia Thomas on May 20, 2024
Verified
Given the following data: 
Return on investment (ROI) is:
A) 30%
B) 5%
C) 20%
D) 12%
Return On Investment
A measure of the profitability of an investment, calculated by dividing the gain from the investment by the cost of the investment.
- Compute and explain essential financial ratios and performance indicators, such as margin, turnover, and residual income.
Verified Answer
EK
Edward KurowskiMay 21, 2024
Final Answer :
D
Explanation :
ROI = Net operating income ÷ Average operating assets
= $15,000 ÷ $125,000 = 12%
= $15,000 ÷ $125,000 = 12%
Learning Objectives
- Compute and explain essential financial ratios and performance indicators, such as margin, turnover, and residual income.