Homework Answers
| a | ||||||
| ROI = 4325000/425000= 10.18% | ||||||
| b | ||||||
| Residual income = 425000-(4325000*7%)= $122250 | ||||||
| c | ||||||
| ROI = (425000+73350)/(4325000+900000)= 9.54% | ||||||
| d | ||||||
| Residual income = (425000+73350)-(4325000+900000)*7%= $132600 | ||||||
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Superior Division of the Monroe Company has to invest in a new project. The project an...
#5 Orange Corp. has two divisions: Fruit and Flower. The following information for the past year...
#5
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division S 1620,000 S 2,430,000 1,822 500 607,500 S 4,050,000 S 2,430,000 1.134000 486,000 S Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROl) and residual income for last year. (Enter your...
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Augusta Corp's Golf Division has sales of $203,000, cost of goods sold of $113,000, operating expenses of $38,000, average invested assets of $913,000, and a hurdle rate of 12.25 percent. Calculate the Golf Division's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss)
Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of...
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The Western Division of Claremont Company had net operating income of $147,000 and average invested assets...
The Western Division of Claremont Company had net operating income of $147,000 and average invested assets of $559,000. Claremont has a required rate of return of 14.50 percent. Western has an opportunity to increase operating income by $33,000 with a $88,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round...
show all work The Western Division of Claremont Company had net operating income of $139,000 and...
show all work
The Western Division of Claremont Company had net operating income of $139,000 and average invested assets of $569,000. Claremont has a required rate of return of 13.25 percent. Western has an opportunity to increase operating income by $50,000 with a $92,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered...
The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $551,000....
The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $551,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $51,000 with a $98,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round...
The Western Division of Claremont Company had net operating income of $143,000 and average invested assets of $569,...
The Western Division of Claremont Company had net operating income of $143,000 and average invested assets of $569,000. Claremont has a required rate of return of 14.00 percent Western has an opportunity to increase operating income by $48,000 with a $86,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project (Enter your ROI answers as a percentage rounded to two decimal places, (ie., 0.1234 should be entered as 12.34%). Round...
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Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of...
Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets Division A Division B Division C $ 1,210,000 $ 1,281,000 $1,316,000 748, 000 941.00 Hui 956,000 83,000 71,000 72,000 67,000 60,000 60,000 11,587,000 2,823,600 4,640,000 Wescott is considering an expansion project in the upcoming year that will...
#5
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division S 1620,000 S 2,430,000 1,822 500 607,500 S 4,050,000 S 2,430,000 1.134000 486,000 S Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROl) and residual income for last year. (Enter your...
Augusta Corp's Golf Division has sales of $203,000, cost of goods sold of $113,000, operating expenses of $38,000, average invested assets of $913,000, and a hurdle rate of 12.25 percent. Calculate the Golf Division's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss)
Wescott Company has three
divisions: A, B, and C. The company has a hurdle rate of 8 percent.
Selected operating data for the three divisions are as follows:
Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows Division A Division B Division C Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets $ 1,280,000 $...
The Western Division of Claremont Company had net operating income of $147,000 and average invested assets of $559,000. Claremont has a required rate of return of 14.50 percent. Western has an opportunity to increase operating income by $33,000 with a $88,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round...
show all work
The Western Division of Claremont Company had net operating income of $139,000 and average invested assets of $569,000. Claremont has a required rate of return of 13.25 percent. Western has an opportunity to increase operating income by $50,000 with a $92,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered...
The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $551,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $51,000 with a $98,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round...
The Western Division of Claremont Company had net operating income of $143,000 and average invested assets of $569,000. Claremont has a required rate of return of 14.00 percent Western has an opportunity to increase operating income by $48,000 with a $86,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project (Enter your ROI answers as a percentage rounded to two decimal places, (ie., 0.1234 should be entered as 12.34%). Round...
Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets Division A Division B Division C $ 1,210,000 $ 1,281,000 $1,316,000 748, 000 941.00 Hui 956,000 83,000 71,000 72,000 67,000 60,000 60,000 11,587,000 2,823,600 4,640,000 Wescott is considering an expansion project in the upcoming year that will...
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