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Stormy Knight
Stormy Knight asked in Business & FinanceInvesting · 7 years ago

How to Find Return on Investment?

Given:

Sales = $800,000

Operating expenses= $690,000

Stockholders’ equity= $250,000

Average operating assets=400,000

Minimum required rate of return= 14%

How to get Return on Investment?

Or alternatively, how to get net operating income?

since ROI= Net operating income/Average operating assets

Help required thanks

1 Answer

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  • Anonymous
    7 years ago
    Favorite Answer

    Net operating income= 800000-690000=110000$

    and your average operating assets = $400000

    ROI= NOI/AOA

    27.5%

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