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ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division.
ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division. Data on the two divisions are Round all rates of return to four significant digits. Required: 1. Comnute residual income for each division. By comparing residual income, is it possible to make a useful comparison of divisional performance? Is it possible now to say that one division outperformed the other? North American Pacific Rim % Can we make meaningful comparisons of divisional performance? North American Pacific Rim Compare these rates with the ROI computed in Requirement 3 . Will this relationship always be the same
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