Interpreting the Economic Return from Investing Ratio (P12-11)
Selma International. Inc.. reported the following information regarding its investment portfolio in the company’s 2012 annual report:
| (DOLLARS IN MILLIONS) | |
| 2012 | 2011 |
Investment | $8,942 | $8,903 |
Dividend revenue | 696 | 362
|
Required:
1. Compute the economic return from investing ratio for 2012.
2. What do the results in requirement (1) suggest about Selma International?
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