Consider the following data (in millions) from Trident Financial Inc., which has two main divisions, mortgage loans and consumer loans:

	Mortgage Loans			Consumer Loans
Average total assets	$	1,300		$	21,750
Operating income	$	299		$	2,610
Return on investment (ROI)		23.00	%		12.00	%

Required:

1. Based on ROI, which division is more successful?

multiple choice

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. Enter "0" wherever required. Negative amounts should be indicated by a minus sign. Enter your answers in millions of dollars, rounded to nearest whole number.)

\begin{tabular}{|l|l|c|c|} \hline & & \multicolumn{2}{|c|}{ Residual Income (RI) } \\ \hline & & Mortgage Loans & Consumer Loans \\ \hline (a) & 10% & & \\ \hline (b) & 15% & & \\ \hline (c) & 20% & & \\ \hline \end{tabular}