eBook Calculator Printem ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division. Data on the two divisions are as follows: North American Pacific Rim Average operating assets $15,000,000 $6,700,000 Operating income 1,250,000 610,000 Minimum required return 79 7% Round all rates of return to four significant digits. Required: 1. Compute residual income for each division. North American $ Pacific Rim $ By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of retum by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value 03927 would be entered as 3.83 percent North American % Pacific Rim Is it possible now to say that one division outperformed the other? 3. Compute the return on investment for each division. Onter vour answers as percentages, rounded to two decimal places. For example, the decimal value.03827 would be entered as "3.83" percent. Previous Next > Check My Work 3 more Check My Worces romano Ema Instructor Save and Submit Assignment for Grading angagenow.com/in/takeAssignment/takeAssignment Main.do?invokeretkossignmentSessionLocator=&inprogress=false eBook Calculator Printem By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of return by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value 03827 would be entered as "3.839 percent. North American Pacific Rim Is it possible now to say that one division outperformed the other? 3. Compute the return on investment for each division, Enter your answers as percentages, rounded to two decimal places. For example, the decimal value.03627 would be entered as "3.83 percent. North American 96 Pacific Rim 99 1 Can we make meaningful comparisons of divisional performance? 4. Add the residual rate of return computed in Requirement 2 to the required rate of return. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value.03827 would be entered as 3.83 percent. North American 25 Pacific Rim Compare these rates with the ROI computed in Requirement 3. Will this relationship always be the same? Previous Next Check My Work 3 mg Chook My Work usos forang Email instructor Save and Submit Assignment for Grading eBook Calculator Printem ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division. Data on the two divisions are as follows: North American Pacific Rim Average operating assets $15,000,000 $6,700,000 Operating income 1,250,000 610,000 Minimum required return 79 7% Round all rates of return to four significant digits. Required: 1. Compute residual income for each division. North American $ Pacific Rim $ By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of retum by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value 03927 would be entered as 3.83 percent North American % Pacific Rim Is it possible now to say that one division outperformed the other? 3. Compute the return on investment for each division. Onter vour answers as percentages, rounded to two decimal places. For example, the decimal value.03827 would be entered as "3.83" percent. Previous Next > Check My Work 3 more Check My Worces romano Ema Instructor Save and Submit Assignment for Grading angagenow.com/in/takeAssignment/takeAssignment Main.do?invokeretkossignmentSessionLocator=&inprogress=false eBook Calculator Printem By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of return by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value 03827 would be entered as "3.839 percent. North American Pacific Rim Is it possible now to say that one division outperformed the other? 3. Compute the return on investment for each division, Enter your answers as percentages, rounded to two decimal places. For example, the decimal value.03627 would be entered as "3.83 percent. North American 96 Pacific Rim 99 1 Can we make meaningful comparisons of divisional performance? 4. Add the residual rate of return computed in Requirement 2 to the required rate of return. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value.03827 would be entered as 3.83 percent. North American 25 Pacific Rim Compare these rates with the ROI computed in Requirement 3. Will this relationship always be the same? Previous Next Check My Work 3 mg Chook My Work usos forang Email instructor Save and Submit Assignment for Grading
