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A multinational corporation operating in Australia has two (2) divisions - A and B The company is trying to assess the comparative performance of the
A multinational corporation operating in Australia has two (2) divisions - A and B The company is trying to assess the comparative performance of the two divisions and the staff who manage them. One of the criteria the firm employs is related to its long term weighted average cost of capital which sits at 18%. You are provided with the following information relating to each divisions' trading figures. The company does not allocate the cost of long-term debt to its divisions. Division A Division B Operating Income 609,000 558,000 3600,000 Total Assets 7300,000 Calculate the Residual Income (RI) for Division A. *Answers in $ form round to nearest whole $ dollar. Answers in (% form round to two decimal places eg show 12.65% as 12.65, not as 0.1265. Do not include the % or $ symbol in your answers
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