Asked by Reveti Kuche on Jul 26, 2024
Verified
The Hum Division of the Ho Company reported the following data for last year: 
The return on investment (ROI) last year for the Hum Division was:
A) 75%
B) 25%
C) 35%
D) 12%
Return On Investment (ROI)
A metric for assessing how well an investment does by comparing what it returns against what it costs.
- Comprehend the return on investment (ROI) metric and its application in evaluating divisional performance.
Verified Answer
HZ
Huihui ZhengJul 29, 2024
Final Answer :
B
Explanation :
ROI is calculated as Net Profit/Total Asset *100%.
From the given data,
Net Profit = $4 Million
Total Asset = $16 Million
ROI = (4/16)*100% = 25%
From the given data,
Net Profit = $4 Million
Total Asset = $16 Million
ROI = (4/16)*100% = 25%
Learning Objectives
- Comprehend the return on investment (ROI) metric and its application in evaluating divisional performance.
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