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I have given you everthing that I could have . I cannot give you more info. Franklin Technologles, Inc. has three divislons. Franklin has a
I have given you everthing that I could have . I cannot give you more info.
Franklin Technologles, Inc. has three divislons. Franklin has a desired rate of return of 12.0 percent The operating assets and Income for each diMsion are as follows: Operating Incone Divisions isions Operat $ 610,808 886,888 436,808 $182,488 Printer Copier Fax Total $1,928,888 $262,988 Franklin headquarters has $127000 of additional cash to Invest In one of lts divisions. The divislon managers have Identified Investment opportunltles that are expected to yleld the following ROls: Divisions Printer Copier Fax Expected ROIs for Additional Investnents 13.5% 12.5% 11.5% Required a-1. Calculate the ROI for each divslon. a-2. Whlch division manager Is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $127000 of Investment funds? c. Based on ROI, which divislon manager would be least lkely to accept the $127,000 of Investment funds? d. Which division offers the best Investment opportunlty for Franklin? g. Calculate the resldual Income (1) At the corporate (headquarters) level before the additional Investment. 2) At the dlvMslon level before the addltional Investment. 3) At the Investment level. (4) At the division level after the additional InvestmentStep by Step Solution
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