The United World Corporation has three subsidiaries.
|
Computers |
Magazines |
Cable TV |
| Sales |
$16,000,000 |
$4,000,000 |
$8,000,000 |
| Net Income (after taxes) |
1,000,000 |
160,000 |
600,000 |
| Assets |
5,000,000 |
2,000,000 |
5,000,000 |
If the $5,000,000 investment in the Cable TV division is soldoff and redeployed in the computer division at the same rate of return on assets currently achieved in the computer division, what will be the new return on assets for the entire corporation?