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Previous Page Next Page Question 19 (5 points) Saved 4) Listen Page 19 of 2 Foods Enterprise is a multi-division company. The current ROI
Previous Page Next Page Question 19 (5 points) Saved 4) Listen Page 19 of 2 Foods Enterprise is a multi-division company. The current ROI for Foods Enterprise as a whole is 11%, and Foods Enterprise has a minimum required rate of return on all investments of 10%. Currently the Boxed Candy Division has average total assets of $2,000,000 with operating income of $400,000. The manger of the Boxed Candy division is considering the purchase of a small company called Truffles Inc. The purchase of Truffles Inc. will require an investment of $800,000 and will increase the Boxed Candy Division operating income by $76,000. Bonuses in all the Foods Enterprise Divisions are awarded to mangers with increasing ROI's. The ROI for the Boxed Candy Division, after the purchase of Truffles Inc. would be: 11% 17% 13% 20% Previous Page Next Page Page 19 of 20
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