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For the current year, our Division's return on investment (ROI) is 20%. Which of the following would increase ROI next year? Net operating income and
For the current year, our Division's return on investment (ROI) is 20%. Which of the following would increase ROI next year? Net operating income and average operating assets increase by the same dollar amount Net operating income and average operating assets increase by the same percentage Both of the above None of the above Assume that a company's residual income is $20.000, its return on investment is 20%, and average operating assets are $500,000. What is the minimum required rate of return? 10% 14% 16% 20% 24% Consider the following for Division A Sales = $7,000,000; Average operating assets = $2,500,000, Net operating income = $475,000; Minimum required rate of return = 15% What is the return on investment (ROI)? 4% 6.8% 15% 19% None of the above
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