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T123-1 (similar to) Common Investments has two divisions. Each division's required rate of return is 8%. Planned operating results for 2017 are as follows: (Click

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T123-1 (similar to) Common Investments has two divisions. Each division's required rate of return is 8%. Planned operating results for 2017 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Measure of income Measure of investment Division A $ 11,200,000 $ 80,000,000 Division B $ 11,880,000 $ 54,000,000 22 % Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. Measure of income ( Measure of investment X Required rate of retur Division A $ 11,200,000 - $ 80,000,000 8 % Division B $ 11,880,000 $ 54,000,000 8 % ) - RI )= $ 4,800,000 )= $ 7,560,000 Requirement c. Common is planning an expansion that will require each division to increase its investments by $30,000,000 and its ir (if either) is pleased with the expansion? Begin by calculating the revised ROI and RI for each division (Round each percentage to the nearest tenth percent, X.X%.) ROI Division A % Division B % 5 of 5 (5 complete) HW Score: 71.28%, 3.56 of 5 pts E Question Help results for 2017 are as follows: eturn 8 % 8 % ) - RI )= $ 4,800,000 ) = $ 7,560,000 nts by $30,000,000 and its income by $6,500,000. Assuming the managers are evaluated on either ROI or residual income, which division percent, X.X%) a. What is the current ROI for each division? b. What is the current residual income for each division? Common is planning an expansion that will require each division to increase its investments by $30,000,000 and its income by $6,500,000. c. Assuming the managers are evaluated on either ROI or residual income, which division (if either) is pleased with the expansion? Requirement c. Common is planning an expansion that will require each division to increase its in (if either) is pleased with the expansion? Begin by calculating the revised ROI and RI for each division. (Round each percentage to the neare ROI Division A Division B Enter any number in the edit fields and then click Check Answer. by $30,000,000 and its income by $6,500,000. Assuming the managers are evaluated on either ROI or residual income, which division percent, X.X%

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