Question
For the period just ended, Trek Corporation's Trailer Division reported profit of $99 million and invested capital of $520 million. Assuming an imputed interest rate
For the period just ended, Trek Corporation's Trailer Division reported profit of $99 million and invested capital of $520 million. Assuming an imputed interest rate of 15%, which of the following choices correctly denotes Trailers return on investment (ROI) and residual income?
| ROI | Residual Income | ||
| A. | 19% | $21 million | |
| B. | 19% | $(21 million) | |
| C. | 15% | $21 million | |
| D. | $21 million | 19% | |
| E. | None of the answers is correct. | ||
Multiple Choice
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Choice A
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Choice B
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Choice C
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Choice D
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Choice E
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CISA Certified Information Systems Auditor Bundle
Authors: Peter H. Gregory
1st Edition
1260459861, 978-1260459869
