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The following summary information is available regarding XYZ Plc. XYZ Plc. Profit Plan F or the year ending Dec. 31, 20 20 Sales Revenue $
The following summary information is available regarding XYZ Plc.
XYZ Plc. | ||
Profit Plan |
| |
For the year ending Dec. 31, 2020 | ||
Sales Revenue | $12,600,000 | |
Net Income | $3,720,000 | |
Total Assets | $9,400,000 | |
Operating Assets | $3,400,000 | |
Total Liabilities | $3,200,000 | |
WACC | 21.6% | |
Tax rate | 10% | |
Return from Project A | $328,000 | |
Cost of project A | $273,000 |
Required: Compute and analyze the:
- Return on Investment (ROI) for project A
- Return on Equity (ROE) and its components for the company.
- Residual income (RI)
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