The Campus Division of All-Stales Bank has assets of $1,600 milion. During the past year, the division had profits...

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The Campus Division of All-Stales Bank has assets of $1,600 milion. During the past year, the division had profits of 300 mil

business accounting

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Answer 1

Answer #1

A) divisional ROI = Profit/operating assets

= 300/1600

= 18.8%

.

B) Divisional RI = Profit - Required return

= 300 - (1600*9%)

= 156,000,000

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Answer 2

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The Campus Division of All-States Bank has assets of S2,100 million. During the past year, the...

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The Campus Division of All-Stales Bank has assets of $1,600 milion. During the past year, the division had profits...