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Rate of Return on Investment, Residual Income Marriott International, Inc., provides lodging services around the world. The company is organized into the following four segments

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Rate of Return on Investment, Residual Income Marriott International, Inc., provides lodging services around the world. The company is organized into the following four segments . North American-Full Service: Marriott and Renaissance Hotels. North American-Limited Service: Courtyard, Fairfield, SpringHill Suites, and Residence Hotels. International: Hotels outside of North America .Luxury: The Ritz-Carlton, Bulgari, and Edition Hotels. Financial information for each segment taken from a recent annual report is as follows (in millions): North AmericanNorth Full Service Limited Service International Luxury Revenues Income from operations Total assets $5,450 351 1,241 $2,358 382 497 1,278 $1,673 74 931 175 1,026 a. Use the DuPont formula to determine the return on investment for each of the Marriott business divisions. Round profit margin to one decimal place and investment turnover to two decimal places. For your final answer (ROI) round to one decimal place Division Return on Investment North American-Full Service: 28 North American-Limited Service: 17 Luxury: b. Determine the residual income for each division, assuming a minimum acceptable income of 10% of total assets. Round minimal acceptable return to the nearest million dollars. Enter your answers in millions of dollars. Use the minus sign to indicate a negative residual income. Division North American-Full Service North American-Limited Service: International Luxury: c. Which segment has the weakest return on investment and the lowest negative residual income and appears to be the best candidate to discontinue? Select 8 Residual income 3 million million million million

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