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Consider the following data (in milions) from Trident Financial Incorporated, which has two main divisions, mortgage loans and consumer loans: Required: 1. Based on ROI,
Consider the following data (in milions) from Trident Financial Incorporated, which has two main divisions, mortgage loans and consumer loans: Required: 1. Based on ROI, which division is more successful? Mortgage loans Consumer loans 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for each division if the minimum desired rate of return is (a) 10%, (b) 15%, and (c) 20% ? (Leave no cells blank. Negative amounts should be indicated by a minus sign. Enter your answers in millions.)
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