One segment of D's Company has the following data: Operating assets of ₱5,000,000; Operating income of ₱750,000. Moreover, the company has a required target ROI of 14% for the said segment Compute the segment's ROI for the year. Assuming that operating assets for the next year increase by 10%. How much would operating income have to increase to reach the target?
One segment of D's Company has the following data: Operating assets of ₱5,000,000; Operating income of ₱750,000. Moreover, the company has a required target ROI of 14% for the said segment Compute the segment's ROI for the year. Assuming that operating assets for the next year increase by 10%. How much would operating income have to increase to reach the target?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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One segment of D's Company has the following data: Operating assets of ₱5,000,000; Operating income of ₱750,000. Moreover, the company has a required target
Compute the segment's ROI for the year.
Assuming that operating assets for the next year increase by 10%. How much would operating income have to increase to reach the target?
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