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The United World Corporation has three subsidiaries. Computers Magazines Cable TV Sales $20,590,000 $5,140,000 $4,190,000 Net income (after taxes) 1,830,000 697,000 364,000 Assets 19,900,000 8,450,000

The United World Corporation has three subsidiaries. Computers Magazines Cable TV Sales $20,590,000 $5,140,000 $4,190,000 Net income (after taxes) 1,830,000 697,000 364,000 Assets 19,900,000 8,450,000 3,860,000

a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Return on sales Computers 8.89 % Magazines 13.56 % Cable TV 8.69 %

a-2. Which division has the lowest return on sales? multiple choice 1 magazines computers cable TV

b-1. Compute the ROA. (Round the final answers to 2 decimal places.) Return on assets Computers 9.20 % Magazines 8.25 % Cable TV 9.43 %

b-2. Which division has the highest ROA? multiple choice 2 magazines cable TV computers c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets 8.98 %

d.

If the $3,860,000 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

*All my answers are correct except last question (which is bolded). *

Thank you!

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