Essay
The Walnut Division of Benton Corp.has average invested assets of $22,500,000.Sales revenue of $27,000,000 results in an operating income of $2,379,500.The hurdle rate is 8%.
a.Calculate the return on investment.
b.Calculate the profit margin.
c.Calculate the investment turnover.
d.Calculate the residual income.
Correct Answer:
Verified
a.10.58% = $2,379,500/$22,500,000
b.8.81...View Answer
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Correct Answer:
Verified
b.8.81...
View Answer
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