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PROBLEM 1 1 - 1 7 Retum on Investment ( ROI ) and Residual Income ( G ) LO 1 1 - 1 , (

PROBLEM 11-17 Retum on Investment (ROI) and Residual Income (G) LO11-1,() LO11-2
Financial data for Joel de Paris, Inc, for last jear follow:
The company paid dividends of $15,000 last year. The "Investment in Buisson. S.A.," on the balance sheat represents an irvestment in the
stock of another company: The company's minimum required rate of returm of 15%.
Required:
Compute the company's average operating assets for last year.
Compute the company's margin, turnover, and return on imvestment (ROI) for last year. (Hint: Should you use nat incoma or
net operating income in your calculations?)
What was the company's residual income last year?
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