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EXERCISE 11-8 Return on Investment (ROI) and Residual Income Relations [LO1, L02] A family friend has asked your help in analyzing the operations of three
EXERCISE 11-8 Return on Investment (ROI) and Residual Income Relations [LO1, L02] A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: Sales..... Net operating income.. Average operating assets ..... Return on investment (ROI) ...... Minimum required rate of return: Percentage..... Dollar amount.. Residual income A $400,000 $ ? $160,000 20% 15% $ ? $ ? Company B $750,000 $ 45,000 ? 18% ? $ 50,000 $ ? C $600,000 $? $150,000 ? 12% $ ? $ 6,000
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