Blaser Corporation had $1,075,000 in invested assets, sales of $1,243,000, income from operations amounting to $216,000 and a desired minimum rate of return of 13%. The rate of return on investment for Blaser Corporation is

Respuesta :

Answer:

Rate of return is 20%

Explanation:

Rate of return is the actual return received on a investment. In this question Blaser Corporation invested $1,075,000 in asset and earned a income of $216,000. So the rate of return is as follow

Rate of return = Income received / Investment in Assets = $216,000 / $1,075,000 = 0.200 = 20%

If Blaser Corporation had $1,075,000 in invested assets. The rate of return on investment for Blaser Corporation is 20%.

Rate of return

Using this formula

Rate of return = Operating Income / Invested Assets

Let plug in the formula

Rate of return = $216,000 / $1,075,000

Rate of return= 0.20×100

Rate of return = 20%

Therefore the rate of return on investment for Blaser Corporation is 20%.

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