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Eta Company would like to examine the sales margin and assets components of return on investment for three of its division and has accordingly prepared
Eta Company would like to examine the sales margin and assets components of return on investment for three of its division and has accordingly prepared the following information:
a) Compute each division's return on investment, sales margin, and turnover
b) Comment on the division's relative rankings on the rations computed in part a
c) Compute each division's residual income, assuming a required return on investment of 8%
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