Question
Bingo Corporation had the following results last year. Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its
Bingo Corporation had the following results last year. Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
Sales $20,000,000
Operating income $2,000,000
Total assets $10,000,000
Current liabilities $4,000,000
What is Bingo's Return on Investment (ROI)?
What is Bingo's sales margin ?
What is Bingo's capital turnover?
What is Bingo's Residual Income (RI)?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
2nd Edition
0324289235, 9780324289237
