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Ralph Laurel is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through
Ralph Laurel is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration. The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. (Click the icon to view the information.) Read the requirements. Management has specified a 21% target rate of return. C Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter your answer as a percent rounded to two decimal places, X.XX%) = ROI X Requirements Data table 1. Calculate each division's ROI. Round all of your answers to four decimal places. Net Sales Operating Revenue Income Average Total Assets 2. Calculate each division's profit margin ratio. Interpret your results. 3. Calculate each division's asset turnover ratio. Interpret your results. Paint Stores Consumer $ 3,940,000 $ 1,265,000 1,420,000 1,620,000 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. Print 6. Describe some of the factors that management considers when setting its minimum target rate of return. X 478,000 $ 184,000 Done
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