Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is the residual income? (these 3 pictures go together) Domestic Streaming 2017 Revenues $6,153,025 Contributed profit (loss) $2,280,464 Profit (loss) % 37.06 1% International
what is the residual income? (these 3 pictures go together)
Domestic Streaming 2017 Revenues $6,153,025 Contributed profit (loss) $2,280,464 Profit (loss) % 37.06 1% International Streaming 2017 Revenues $5,089,191 Contributed profit (loss) $266,589 Profit (loss) % 5.24 % Domestic DVD 2017 Revenues $450,497 Contributed profit (loss) $247,972 Profit (loss) % 55.04 1% Question Completion Status: QUESTIONS (Continued from previous problem.) A. Since companies typically do not publicly provide more than macro levels of asset values, let's assume the following level of assets (investment): 2016 2015 $14,000,000 Assets (fictitious) 12017 Domestic streaming $14,500,000 international streaming $6,500,000 Domestic DVD $1,000,000 59,500,000 $3,000,000 $4,500,000 $1,500,000 53,000,000 Calculate the 2017 return on investment (ROI) for each division. Use the average assets for 2017 as the investment base. Round to one decimal place. ROI Domestic Streaming 15.7 International Streaming 4.1 Domestic DVD 24.8 1946 ARRA QUESTION 6 (Continued from previous problem.) Assume that Netflix has a required rate of return of 8%. Calculate the residual income (RI) for each of the divisions for 2017. Residual Income Domestic Streaming International Streaming Domestic DVD Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started