Evaluating Business Segment Information

The Tower Company provides the following information about its business segments:

	2016	2015
Total net revenue:	$450,000	$380,000
Segment 1	440,000	365,000
Segment 2	330,000	300,000
Segment 3
NOPAT:
Segment 1	$55,000	$40,000
Segment 2	25,000	20,000
Segment 3	46,000	43,000
Net operating assets:
Segment 1	$430,000	$280,000
Segment 2	120,000	100,000
Segment 3	150,000	110,000

Calculate the 2016 Return on Net Operating Assets (RNOA) for each segment.

Select one:

a. Segment 1 = 12.8% Segment 2 = 20.8% Segment 3 = 30.7%

b. Segment 1 = 15.5% Segment 2 = 22.7% Segment 3 = 35.4%

c. Segment 1 = 12.2% Segment 2 = 5.7% Segment 3 = 13.9%

d. Segment 1 = 11.0% Segment 2 = 18.8% Segment 3 = 29.7%