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Walton Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. c. Calculate the ROI for Bowman. d.
Walton Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. c. Calculate the ROI for Bowman. d. Walton has a desired ROI of 12 percent. Headquarters has $90,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. e. Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. Complete this question by entering your answers in the tabs below. Calculate the ROI for Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45 ).) Walton has a desired ROI of 12 percent. Headquarters has $90,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. (Round your final answer to nearest whole dollar.)
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