Questions 3 - 4 (Part A) uses the following data: Unique Limited has three sales divisions,...

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Questions 3 - 4 (Part A) uses the following data: Unique Limited has three sales divisions, High Value, Best Value, and Cut-Price Value. The Year 1 financial performance for the Best Value division and the forecast performance for years 2 to 3 is shown in the table below. Year Revenue ($'000) Costs ($'000) Net Profit ($'000) Year 1 Actual Year 2 Forecast Year 3 Forecast Mean 800 450 1050 766.7 600 600 750 650 200 (150) 300 116.7 Time left Unique Limited wants to assess whether the Best Value division is generating an appropriate return, considering risk and the company's required rate of return of 8%. If Unique Limited is applying the Earnings Volatility Model, what is adjusted income for the three-year period, rounded to the nearest ($'000)? O a. 318 Ob. 201 O c. 450 O d. 350 Oe. 315 If Unique Limited is applying the Asset Volatility Model, what is adjusted income, for the three-year period, rounded to the nearest ($'000)? O a. 233 Ob. 202 O c. 315 O d. 250 Oe. 318 Questions 3 - 4 (Part A) uses the following data: Unique Limited has three sales divisions, High Value, Best Value, and Cut-Price Value. The Year 1 financial performance for the Best Value division and the forecast performance for years 2 to 3 is shown in the table below. Year Revenue ($'000) Costs ($'000) Net Profit ($'000) Year 1 Actual Year 2 Forecast Year 3 Forecast Mean 800 450 1050 766.7 600 600 750 650 200 (150) 300 116.7 Time left Unique Limited wants to assess whether the Best Value division is generating an appropriate return, considering risk and the company's required rate of return of 8%. If Unique Limited is applying the Earnings Volatility Model, what is adjusted income for the three-year period, rounded to the nearest ($'000)? O a. 318 Ob. 201 O c. 450 O d. 350 Oe. 315 If Unique Limited is applying the Asset Volatility Model, what is adjusted income, for the three-year period, rounded to the nearest ($'000)? O a. 233 Ob. 202 O c. 315 O d. 250 Oe. 318

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To calculate the adjusted income for the threeyear period using the Earnings Volatility Model we nee... View the full answer