Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The United World Corporation has three subsidiaries Computers $20,040,000 Sales Net income (after taxes) Assets Computers Magazines Cable TV O cable TV O computers magazines

The United World Corporation has three subsidiaries Computers $20,040,000 Sales Net income (after taxes) Assets Computers Magazines Cable TV O cable TV O computers magazines a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a-2. Which division has the lowest return on sales? Computers Magazines Cable TV 1,700,000 8,340,000 b-2. Which division has the highest ROA? magazines computers Return on sales b-1. Compute the ROA. (Round the final answers to 2 decimal places.) Return on assets O cable TV Magazines $5,980,000 % 592,000 8,760,000 Cable TV $4,730,000 402,000 3,570,000 c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets
image text in transcribed
image text in transcribed
The United World Corporation has three subsidlaries a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a-2. Which division has the lowest return on sales? cable TV computers magazines b-1. Compute the ROA. (Round the final answers to 2 decimal places.) b-2. Which division has the highest ROA? magazines computers cable TV c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets d. If the $3,570.000 investment in the cable TV division is sold and redeployed in the computer subsidiary at the same rate of ROA currently achieved in the computer division, what will be the new ROA for the entire corporation? (Round the final answer to 2 decimal places.) New return on assets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Experimental Finance

Authors: Sascha Füllbrunn, Ernan Haruvy

1st Edition

1800372329, 978-1800372320

More Books

Students also viewed these Finance questions

Question

=+2. How would you prepare for a virtual interview?

Answered: 1 week ago

Question

Discuss five types of employee training.

Answered: 1 week ago

Question

Identify the four federally mandated employee benefits.

Answered: 1 week ago