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Exercise 14-25 (Algo) Compute RI and ROI (LO 14-2, 3) The Campus Division of All-States Bank has assets of $2,000 million. During the past year, the division had profits of $235 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.)

Exercise 14-25 (Algo) Compute RI and ROI (LO 14-2, 3) The Campus Division of All-States Bank has assets of $2,000 million. During the past year, the division had profits of $235 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 14-25 (Algo) Compute RI and ROI (LO 14-2, 3)

The Campus Division of All-States Bank has assets of $2,000 million. During the past year, the division had profits of $235 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.)

 

 

 

 

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