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Week 13 Review Problems Saved 9 Problem 13-39 Residual Income (LO 13-2, 13-4) Long Beach Pharmaceutical Company has two divisions, which reported the following results

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Week 13 Review Problems Saved 9 Problem 13-39 Residual Income (LO 13-2, 13-4) Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year points Division I Division II $ 900,000 200,000 Income Average invested capital $6,000,00 1,000,000 ROI 15% 204 eBook Required References Compute each division's residual income for the year under each of the following assumptions about the firm's cost of acquiring capital. a. 12 percent. b. 15 percent. C. 18 percent. Residual income at 12 percent. Residual income at 15 percent. Residual income at 18 percent.

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