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help Fanning Home Maimenance Company earned operating income of $6,750,500 on operating assets of $58,700,000 during Year 2 . The Tree Culting Division earned $1,155,840
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Fanning Home Maimenance Company earned operating income of $6,750,500 on operating assets of $58,700,000 during Year 2 . The Tree Culting Division earned $1,155,840 on operating assets of $6,880,000. Fanning has offered the Tree Ciating Division $2,200,000 of additional operating assets. The manager of the Tree Cutting Division believes ho could use the additional assets to generate operating income amounting to $451,000. Fanning has a desiced return on imestment (RO) of 9.50 percent. Required a. Calculate the retum on investment for Fanning. the Tree Cutting Division, and the additional investment opportunity. b. Calculate the residual income for Fanning. the Tree Cutting Dwision, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Calculate the return on investment for fanning, the Tree Cutbing Dwision, and the sddational investment opportunity. Note: round your answers to 2 declemal places, (1.e, 0.2345 should be entered as 23.45 ) Step by Step Solution
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