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Question 9 (of 9) Save & E 1112 points Coolbrook Company has the following information available for the past year: River Division Stream S 1,200,000

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Question 9 (of 9) Save & E 1112 points Coolbrook Company has the following information available for the past year: River Division Stream S 1,200,000 $ 1,800,000 Division Sales revenue Cost of goods sold and operating expenses 900,000 1300,000 S 300,000 $ 500,000 Net operating income Average invested assets The company's hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROl answers as a percentage rounded to two decimal places, (i.e. 0.1234 should be entered as 12.34% River Division Stream Division ROI Residual Income (Loss) 2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your RO answers as a percentage rounded to two decimal places. (Le.. 0.1234 should be entered as 12.34%.)) a. Operating income increases by 10 percent River DivisionStream Division ROI Residual Income (Loss) b. Operating income decreases by 10 percent Stream Division ROI Residual Income (Loss) unswels as a percelaye founded to tw dcimal places, (ie., 0.1234 should be entered as 1 a. Operating income increases by 10 percent. River Division Stream Division ROI Residual Income (Loss) b. Operating income decreases by 10 percent River Division Stream Division ROI Residual Income (Loss) c. The company invests $250,000 in each division, an amount that generates $100,000 additional inc River Division Stream Division ROI Residual Income (Loss) d. Coolbrook changes its hurdle rate to 10 percent. River Division Stream Division ROI Residual Income (Loss)

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