Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent...
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Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year 10 Income Division I $900,000 points Average invested capital ROI $ 6,000,000 Division II $ 200,000 $1,000,000 15% 20% Skipped Required: 1. Compute each division's residual income for the year under each of the following assumptions about the firm's cost of acquiring capital. a 12 percent. eBook Print b. 15 percent References c 18 percent. Residual income at 12 percent Residual income at 15 percent Residual income at 18 percent Division I Division il Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year 10 Income Division I $900,000 points Average invested capital ROI $ 6,000,000 Division II $ 200,000 $1,000,000 15% 20% Skipped Required: 1. Compute each division's residual income for the year under each of the following assumptions about the firm's cost of acquiring capital. a 12 percent. eBook Print b. 15 percent References c 18 percent. Residual income at 12 percent Residual income at 15 percent Residual income at 18 percent Division I Division il
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