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14 - I REALLLLLY APPRECIATE YOUR HELP AND EXPLAINATION, THANK YOU! Houghton Chemicals, which started operations one year ago, has two divisions: Alloys and Petro.

14 - I REALLLLLY APPRECIATE YOUR HELP AND EXPLAINATION, THANK YOU!image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Houghton Chemicals, which started operations one year ago, has two divisions: Alloys and Petro. Both divisions invest heavily in R\&D, which is assumed to generate benefits for five years. R\&D spending is made uniformly throughout the year. Houghton Chemicals has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows: Required: Evaluate the performance of the two divisions assuming Houghton Chemicals uses economic value added (EVA). Note: Enter your answers in thousands of dollars rounded to 1 decimal place. The Dry Wall Division reports the following operating data for the past two years: The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2. Divisional assets in Year 1 were: Multiple Choice $160,000. $150,000. $125,000. $100,000. uses end-of-year asset values. What is the ROI for each year using gross book value? Multiple Choice Option A Option B Option C Option D company uses end-of-year asset values. What is the ROI for each year using net book value? Multiple Choice Option A Option B Option C Option D The Maxim Corporation reported the following operating results for its three divisions: South, West, and East. Which division has the largest asset turnover? Multiple Choice South West East All three divisions have the same asset turnover

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