Question
The Campus Division of All-States Bank has assets of $2,800 million. During the past year, the division had profits of $275 million. All-States Bank has
The Campus Division of All-States Bank has assets of $2,800 million. During the past year, the division had profits of $275 million. All-States Bank has a cost of capital of 5 percent. Ignore taxes.
Required:
a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)
b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.)
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Accounting Principles Volume 1
Authors: Jerry A. Weygandt, Paul D. Kimmel, Donald E. Kieso
11th Edition
1118751752, 978-1118751756
