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Rate of Return on Investment, Residual Income Starwood Hotels & Resorts Worldwide provides lodging services around the world. The company is separated into two major
Rate of Return on Investment, Residual Income Starwood Hotels & Resorts Worldwide provides lodging services around the world. The company is separated into two major divisions. Hotel Ownership: Hotels owned and operated by Starwood. Vacation Ownership: Resort properties developed, owned, and operated for timeshare vacation owners. Financial information for each division, from a recent annual report, is as follows (in millions): Use the DuPont formula to determine the return on investment for each of the Starwood business divisions. Round interim calculations to two decimal places. Determine the residual income for each division, assuming a minimum acceptable income of 5% 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. The Vacation Ownership (VO) segment has the Select return on investment, which is mainly the result of a select investment turnover
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