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The following information pertains to XV Division, which has $2,000,000 in investments. Division sales revenue Less division expenses Division income 940,000 440,000 $ 500,000
The following information pertains to XV Division, which has $2,000,000 in investments. Division sales revenue Less division expenses Division income 940,000 440,000 $ 500,000 The company's cost of capital is 5%. Requirements (a) What is the division's return on investment? (b) What is the division's residual income? Requirement (a) What is the division's return on investment? (Enter the percentage to the nearest tenth percent, XX.X%.) Return on = investment %
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Accounting Information Systems basic concepts and current issues
Authors: Robert Hurt
3rd edition
130855849X, 978-1308558493, 78025338, 978-0078025334
