Return on Investment (ROI) and Residual Income (RI) Consider the following data (in millio...

Return on Investment (ROI) and Residual Income (RI) Consider the following data (in millions) from Trident Financial, Inc., which has two main divisions, mortgage loans and consumer loans:

Required

1. Based on ROI, which division is more successful? Why?

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2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for each division if the minimum desired rate of return is: (a) 10%, (b) 15%, and (c) 20%? Which division is more successful under each of these rates?