Question

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

Answer 1

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%

Answer 2

Answer:

20.09% or 0.2009

Explanation:

The rate of return on investment is a financial measure that shows how much income was generated for each $1 invested in assets.

It is an indicator of how well management has utilized the investments in the generation of net income for the business.

It is also known as returns on investments (ROI).

The rate of return on investment for Blaser Corporation is

= $216,000/$1,075,000

= 20.09%