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Q3.Oraby Industries is a division of a major corporation. Last year the division had total sales of SAR 23,380,000, operating income of SAR 2,828,980, and
Q3.Oraby Industries is a division of a major corporation. Last year the division had total sales of SAR 23,380,000, operating income of SAR 2,828,980, and invested assets of SAR 10,000,000. Required: a. What is the division's profit margin? [5 marks] b. What is the division's investment turnover? [5 marks] c. What is the division's return on investment (ROI) using DuPont formula? [5 marks] d. What is the residual income if investors require a minimum return of 20%? [5 marks]
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