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you have the following incomplete information about colour corp's ochre and Sienna division Ochre Sienna Sales 720,000 D Operating income 54,000 E Average Operating assets

you have the following incomplete information about colour corp's ochre and Sienna division

Ochre Sienna

Sales 720,000 D

Operating income 54,000 E

Average Operating assets A 120,000

Margin B 4%

Turnover C 5

Return on investment 15% F

Required fill in blanks for a,b,c,d,e,f

Part 2

b. assume orche division has a minimum required rate of return of 12%. based on the information and calculations above determine ochre divisions residual income

c. assume ochre division has an investment opportunity that would yield a return rate of 13%. if the divisions managers performance is measure by roe if she likely to accept the opportunity? why or why not

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