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Coolbrook Company has the following information available for the past year Division Sales revenue $1,205,00 Stream Division $1.817,000 Cost of gends sale and operating
Coolbrook Company has the following information available for the past year Division Sales revenue $1,205,00 Stream Division $1.817,000 Cost of gends sale and operating expenses 87,000 Net operating Incone Average invested assets The company's hurdle rate is 6.26 percent Required: 1. Calculate return on investment (RO) and residual income for each division for last year 2. Recalculate ROI and residual income for the division for each independent situation that follows a. Operating income increases by 9 percent b. Operating income decreases by 9 percent The company invests $256,000 in each division, an amount that generates $101,000 additional income per division d. Coolbrook changes its hurdle rate to 4.26 percent Complete this question by entering your answers in the tabs below. A 20 Calculate return on investment (ADE) and residual income for each division for last year (Enter your RDE answers as a percentage rounded to two decimal places, e. 0.1234 should be entered as 12.34% RO Residual Incom River Diviston San Division A> Save & Ext
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