Barrera Corporation provides the following financial information:
Calculate the target rate of return. (Round your answer to two decimal places.)
A) 21.41%
B) 78.67%
C) 27.23%
D) 61.84%
A) 21.41%
Explanation: Minimum acceptable operating income = Target rate of return × Average total assets
Target rate of return = Minimum acceptable operating income / Average total assets = $556,600 / $2,600,000 = 21.41%
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