In 1991, Enager had as its return on year-end assets (net income divided by total assets) Hubbard, this corresponded to a "gross return" of 9.3 a rate of 5.2 percent. According to percent; he defined gross return as equal to earnings before interest and taxes ("EBIT") divided by assets. Hubbard felt that a company like ager should have a gross (EBIT) return on assets of at least 12 percent, especially given the interest rates the corporation had to pay o its recent borrowing. He, therefore, instructed each division manager that the division was to try to earn a gross return of 12 percent in 1992 and 1993. In order to help pull the return up to this level, Hubbard decided that new investment proposals would have to show a return of at least 15 percent in order to be approved