Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of...
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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 7.01 percent. Selected operating data for the three divisions follow: Sales revenue Peak View Grand Cost of goods sold ed ces Miscellaneous operating expenses Average invested assets. Required: $ 326,000 $224,000 5 315,000 203,000 104,000 43,000 1,360,000 34,000 940,000 1. Compute the return on investment for each division. 2. Compute the residual income for each division. 183,000 31,000 1,085,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Return on Investment Peak View Grand % % Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 7.01 percent. Selected operating data for the three divisions follow: Sales revenue Peak View Grand Cost of goods sold ed ces Miscellaneous operating expenses Average invested assets. Required: $ 326,000 $224,000 5 315,000 203,000 104,000 43,000 1,360,000 34,000 940,000 1. Compute the return on investment for each division. 2. Compute the residual income for each division. 183,000 31,000 1,085,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Return on Investment Peak View Grand % %
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