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4 Solomon Technologies, Inc. has three divisions. Solomon has a desired rate of return of 12.0 percent. The operating assets and income for each division
4 Solomon Technologies, Inc. has three divisions. Solomon has a desired rate of return of 12.0 percent. The operating assets and income for each division are as follows: 2 points Divisions Printer Copier Fax Total Operating Assets $ 680,000 950,000 500,000 $2,130,000 Operating Income $109,480 100,700 67,500 $277,680 eBook Solomon headquarters has $134,000 of additional cash to invest in one of its divisions. The division managers have identified Investment opportunities that are expected to yield the following Rols: References Divisions Printer Copier Fax Expected ROIS for Additional Investments 13.5% 12.5% 11.5% Required a-1. Calculate the Rol for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $134,000 of investment funds? d. Which division offers the best investment opportunity for Solomon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional Investment. (2) At the division level before the additional investment. (3) At the Investment level. (4) At the division level after the additional Investment. Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? C. Based on ROI, which division manager would be least likely to accept the $134,000 of investment funds? d. Which division offers the best investment opportunity for Solomon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional Investment. (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional Investment. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to D Reg G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROI Printer Division Copier Division 16.1% 10.6 % Fax Division 13.5 % points a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? C. Based on ROI, which division manager would be least likely to accept the $134,000 of investment funds? d. Which division offers the best investment opportunity for Solomon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional Investment. (2) At the division level before the additional investment. (3) At the Investment level. (4) At the division level after the additional Investment. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to D Req G1 Req G2 to G4 a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? C. Based on ROI, which division manager would be least likely to accept the $134,000 of investment funds? d. Which division offers the best investment opportunity for Solomon? Show less A a- 2. Printer division b. Copier division Which division manager is currently producing the highest ROI? Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? Based on ROI, which division manager would be least likely to accept the $134,000 of investment funds? Which division offers the best investment opportunity for Solomon? C. Fax division d. Printer division Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $134,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $134,000 of Investment funds? d. Which division offers the best Investment opportunity for Solomon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional Investment. (2) At the division level before the additional investment. (3) At the Investment level. (4) At the division level after the additional Investment. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income 22,080 4 C. Based on ROI, wnicn division manager would be least likely to accept the $134,000 of investment runas! d. Which division offers the best investment opportunity for Solomon? g. Calculate the residual income: 2 points (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the Investment level. (4) At the division level after the additional Investment. > Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Show less (2) Printer division s Residual Income (loss) 27,880 (13,300) 7,500 $ $ (3) Copier division Fax division Printer division Copier division Fax division Printer division Copier division Fax division
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