The Campus Division of All-States Bank has assets of $1,800 million. During the past year, the division

Question:

The Campus Division of All-States Bank has assets of $1,800 million. During the past year, the division had profits of $225 million. All States Bank has a cost of capital of 4 percent. Ignore taxes.

Required
a. Compute the divisional ROI for the Campus Division.
b. Compute the divisional RI for the Campus Division.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...