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Sales $450,000
Operating income 25,000
Net profit after taxes 8,000
Total assets 500,000
Shareholders’ equity 200,000
Cost of capital 6%
Based on the above information, which one of the following statements is true? Anas has a
A.Return on investment of4%.
(B.Residual income of $(5000.
C.Return on investment of1.6%.
(D.Residual income of $(22,000.
A. Return of Investment of4%