subject
Business, 26.08.2019 20:30 taviiii3993

Selected sales and operating data for three divisions of different structural engineering firms aregiven as follows: division a division b division c sales $ 6,000,000 $ 10,000,000 $ 9,100,000 average operating assets $ 1,200,000 $ 2,500,000 $ 1,820,000 net operating income $ 306,000 $ 910,000 $ 213,850 minimum required rate of return 20.00 % 36.40 % 17.00 %required: 1. compute the return on investment (roi) for each division using the formula stated in terms of margin and turnover. (round your turnover answers to 2 decimal places. round your margin and roi percentage answers to 2 decimal places (i. e., 0.1234 should be entered as 12. 2. compute the residual income (loss) for each division. (loss amounts should be indicated by a minus sign. round your required rate of return percentage answers to 2 decimal places (i. e., 0.1234 should be entered as 12. 3. assume that each division is presented with an investment opportunity that would yield a 22% rate of return. a. if performance is being measured by roi, which division or divisions will probably accept or reject the opportunity? b. if performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 08:40
Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?
Answers: 3
question
Business, 22.06.2019 09:50
The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?
Answers: 2
question
Business, 22.06.2019 15:30
Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.
Answers: 3
question
Business, 23.06.2019 07:00
Nthis economy, community members typically use simple tools to plant and harvest crops. food supplies are supplemented by hunting animals and gathering plant materials. members trade with each other to obtain needed goods, as few people hold currency. little economic growth occurs. what type of economy is being described?
Answers: 3
You know the right answer?
Selected sales and operating data for three divisions of different structural engineering firms areg...
Questions
question
Mathematics, 12.08.2020 07:01
Questions on the website: 13722360