Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 560,000 ? 30% 2 ? ? Division B $ 11,000,000 $ 2,020,000 $ 2,610,000 ? ? ? ? Division C ? ? ? 35% ? 20% $ 129,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 560,000 ? 30% 2 ? ? Division B $ 11,000,000 $ 2,020,000 $ 2,610,000 ? ? ? ? Division C ? ? ? 35% ? 20% $ 129,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
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
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Use the following information for the Problems below:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The
company's required rate of return on invested capital is 8 percent.
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Division A
?
$ 560,000
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Division A
$
8,750,000
$
1,750,000
$ 8,750,000
20 %
1.00
20 %
?
30%
2
?
?
$ 1,050,000
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's
required rate of return on invested capital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
Division B
$ 11,000,000
$ 2,020,000
$ 2,610,000
$
$
$
Division B
41,000,000
9,020,000
10,250,000
22 %
?
?
?
?
%
Check my work
$
Division C
?
?
?
35%
?
20%
$ 129,000
Division C
25 %
20 %
492,000
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