chapter 11 LO2

The companv baid dividends of $552.640 last vear. The "Investment in Buisson. S.A.". on 1 The company paid dividends of $552,640 last year. The "Investment in Buisson, 5.A," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of retum of 15% Required: 1. Compute the company's average operating assets for last year 2. Compute the company's margin, turnover, and return on investment (RON) for last year (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROl) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunit Complete this question by entering your answers in the tabs below. Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Required: 1. Compute the margin, tumover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by ROT, which division or divisions will probably accept or refect the opportunity? Required: 1. Compute the margin, tumover, and return on investment (RO1) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income. which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yleld a 11% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity