A) divisional ROI = Profit/operating assets
= 300/1600
= 18.8%
.
B) Divisional RI = Profit - Required return
= 300 - (1600*9%)
= 156,000,000
The Campus Division of All-Stales Bank has assets of $1,600 milion. During the past year, the division had profits...
The Campus Division of All-States Bank has assets of S2,100 million. During the past year, the division had profits of $325 million. All-States Bank has a cost of capital of 8 percent. Ignore taxes. Required a. Compute the divisional ROI for the Campus Division. Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Divisional RO b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional Rl
The Campus Division of All-States Bank has assets of $1,900 million. During the past year, the division had profits of $315 million. All-States Bank has a cost of capital of 6 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) b. Compute the divisional RI for the Campus Division (Enter your answer in dollars, not in millions.)
The Campus Division of All-States Bank has assets of $2,800 million. During the past year, the division had profits of $275 million. All-States Bank has a cost of capital of 5 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.)
The Campus Division of All-States Bank has assets of $1,500 million. During the past year, the division had profits of $295 million. All-States Bank has a cost of capital of 8 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.)
Check my work Harbor Division has total assets (net of accumulated depreciation) of $720,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $61,000. Expected divisional income in year 1 is $87,000 including $5,000 in income generated by the machine (after depreciation). Harbor's cost of capital is 11 percent. Harbor is considering disposing of the asset today (the beginning of year 1). points Skipped eBook Required: a. Harbor computes...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc.,
a manufacturer of biotech products. Forbes Division, which has
$4.05 million in assets, manufactures a special testing device. At
the beginning of the current year, Forbes invested $5.12 million in
automated equipment for test machine assembly. The division’s
expected income statement at the beginning of the year was as
follows:
Sales revenue
$
16,060,000
Operating costs
Variable
2,100,000
Fixed (all cash)
7,660,000
Depreciation
New equipment
1,560,000
Other
1,330,000
Division...