Question
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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