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Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROI)
Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROI) 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $253,000 in each division, an amount that generates $109,000 additional income per divisio d. Coolbrook changes its hurdle rate to 5.01 percent. Complete this question by entering your answers in the tabs below. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))
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