Homework Answers
rate positively ..
| i | Average operating asset | 24,000,000 | ||
| ii | Operating income | 3,840,000 | ||
| iii | minimum required rate = | 10% | ||
| iv=iii*i | Minimum required return = | 2,400,000 | ||
| v=ii-iv | Residual income = | 1,440,000 | ||
| vi=v/i | residual return = | 6.00% | ||
| ans = option c) 6% | ||||
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financial information Following is the of Inventor Inc. for the last fiscal year! Average operating assets...
Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Minimum rate...
Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Minimum rate of return Compute the return on investment and the residual income. Return on investment Residual income
Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000...
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The Southern Division of Smith Company had average operating assets totaling $670,000 last year. If the...
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Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last...
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Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Minimum rate of return Compute the return on investment and the residual income. Return on investment Residual income
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