Question
The Global Products Corporation has three subsidiaries. Medical Supplies Heavy Machinery Electronics Sales $20,850,000 $5,120,000 $4,850,000 Net income (after taxes) 1,350,000 473,000 346,000 Assets 8,660,000
The Global Products Corporation has three subsidiaries. Medical Supplies Heavy Machinery Electronics Sales $20,850,000 $5,120,000 $4,850,000 Net income (after taxes) 1,350,000 473,000 346,000 Assets 8,660,000 8,770,000 3,440,000
a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Return on sales Medical Supplies % Heavy Machinery % Electronics %
a-2. Which division has the lowest return on sales? multiple choice 1 Heavy Machinery Electronics Medical Supplies
b-1. Compute the return on assets? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Return on assets Medical Supplies % Heavy Machinery % Electronics %
b-2. Which division has the highest return on assets? multiple choice 2 Electronics Medical Supplies Heavy Machinery
c. Compute the return on assets for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets %
d. If the $8,770,000 investment in the heavy machinery division is sold and redeployed in the medical supplies subsidiary at the same rate of ROA currently achieved in the medical supplies division, what will be the new ROA for the entire corporation? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) New return on assets %
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