Question
2. Justine is the manager of an investment center. Currently Justine has an ROI of 18%, which is well above the company's average of 15%.
2. Justine is the manager of an investment center. Currently Justine has an ROI of 18%, which is well above the company's average of 15%. The company desires an ROI of new projects to be 12% to be acceptable. Justine's Operating Income is $100,000, and Sales are $1,000,000.
What is Justine's Asset Turnover (or Investment Turnover)? Round to the nearest 0.1
3. Justine is the manager of an investment center. Currently Justine has an ROI of 18%, which is well above the company's average of 15%. The company desires an ROI of new projects to be 12% to be acceptable. Justine's Operating Income is $100,000, and Sales are $1,000,000.
Justine is evaluated using Residual Income, with a hurdle rate of 12%. What is Justine's residual income? (round to the nearest $1)
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
