Cabell Products is a division of a major corporation. Last year the division had total sales of $10,400,000, net operatingincome of $540,800, and average operating assets of $2,392,000. The company's minimum required rate of return is16%.The division's return on investment (ROI) is closest to:Multiple Choice32,5%22.6%5.2%23.0%

The division's return on investment is calculated by dividing the net operating income by average…

Answered: Cabell Products is a division of a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Need help
LaLa Company has income from operations of $23,280, invested assets of $97,000, and sales of $388,000. What is the return on investment (ROI) for this company? Group of answer choices 24% 25% 100% none of these
Division B had an ROI last year of 15%. The division's minimum required rate of return is 10%. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: Select one: a. $67,500 b. $22,500 c. $37,500 d. $45,000
es The Campus Division of All-States Bank has assets of $1,300 million. During the past year, the division had profits of $285 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).) Mc Graw Hill Divisional ROI b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI % Question 11 - Hom....
The following information is available about the status and operations of Jay Arr Company, which has a required ROI of 15% and discount rate of 12%: Division A Division B Divisional Investment P 500,000 P 1,250,000 Divisional Profit P 350,000 P 625,000 Variable Cost P 500,000 P 3,500,000 Divisional Sales P1, 500,000 P 5,500,000 Division A could increase its sales by P 300,000 by increasing its investment by P300,000. Compute its ROI. Division A could increase its sales by P150,000 by increasing its investment by P400,000. Compute its total residual income. Division B could reduce its investment so that its asset turnover increased by 2, while holding total sales constant. Compute its residual income.
The following information relates to last year's operations at the Dairy Division of Carrefour Bahrain: Minimum required rate of return Return on investment (ROI) Sales Turnover (on operating assets) 11% 14.4% $ 970,000 6 times What was the Dairy Division's net operating income last year? O $139,680 $106,700 $32,980 $23,280
Rahul
Need Answer Pls provide fast..
The Millard Division's operating data for the past two years are provided below: Return on investment Net operating income Turnover Margin Sales Year 1 12% Year 2 36% ? $ 480,000 ? 3 ? ? $ 3,260,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: (Round your intermediate percentage calculations to the nearest whole percent.) Multiple Choice $320,000 $260,800 $391,200 $782,400
For its three investment centers, Flint Company accumulates the following data: || III Sales $2,360,000 $4,720,000 $4,720,000 Controllable margin 1,770,000 2,548,800 4,484,000 Average operating assets 5,900,000 9,440,000 11,800,000 Compute the return on investment (ROI) for each center. The return on investment % % III %
BR Company has a contribution margin of 20%. Sales are $403,000, net operating income is $80,600, and average operating assets are $128,000. What is the company's return on investment (ROI)? Multiple Choice 63.0% 0.3% 20.0% 3.2%
Vishnu

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS