Question
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.76 percent. Selected operating data for the three divisions
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.76 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue Cost of goods sold ok 1 Miscellaneous operating expenses Average invested assets $ 338,000 $ 235,000 $306,000 207,000) 40,000 1,300,000 103,000 189,000 35,000 950,000 34,000 1,215,000 aces Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. 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, (1.e., 0.1234 should be entered as 12.34 %. ) ) Return on Investment Peak View Grand
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