Check my work 7 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 5 689,900 950,000 500,000 $2,130,000 Operating Income $109,480 100,700 67,500 $277,680 eBook Print 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 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. Complete this question by entering your answers in the tabs below. Check my work 7 Required 2 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: eBook (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. Print References Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) ROI Printer Division Copier Division Fax Division Check my work 7 Required 2 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. eBook Print References Complete this question by entering your answers in the tabs below. Reg A1 Req A2 to D Req G1 Reg GZ to G4 a-2. Which division manager is currently producing the highest ROI? Based on ROI, which division manager would be most eager to b accept the $134,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the S134,000 of investment funds? d. Which division offers the best investment opportunity for Solomon? Check my work 7 Divisions Printer Copier Fax CAPELLLU ILI TU! Additional Investments 13.5% 12.5% 11.5% 2 points Required cBook 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: Pint (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. References Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income Check my work 7 (2) At the division level before the additional investment. (3) At the investment level (4) At the division level after the additional investment. 2 points Complete this question by entering your answers in the tabs below. eBook Reg A1 Req AZ to D Reg G1 Rea G2 to G4 Print 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 References Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division
