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lbvjy [14]
3 years ago
13

Cabal Products is a division of a major corporation. Last year the division had total sales of $11,650,000, net operating income

of $1,141,700, and average operating assets of $3,495,000. The company's minimum required rate of return is 11%. The division's return on investment (ROI) is closest to: 9.8% 32.7% 89.1% 30.0%
Business
1 answer:
Snezhnost [94]3 years ago
5 0

Answer:

Hence, The division's return on investment (ROI) is closest to 32.7%

Explanation:

Return on Investment : It show a ratio between net operating income and average operating assets so that company get to know how much the return is available during a period.

The formula to compute return on investment is shown below:

= Net operating income ÷ Average operating assets

= $1,141,700 ÷ $3,495,000

= 32.7%

Since the total sales and require rate of return is irrelevant while computing the ROI. So, it would not be considered in computation part.

Hence, The division's return on investment (ROI) is closest to 32.7%

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Miller's department store is having a sale with a 25% discount on mattresses. if the sales tax rate is 8%, how much change will
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The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then formed
Tasya [4]

Answer:

a. The book value and market value of the firm is  $1,200,000 and $49,200,000 respectively

b. The price per share and the book value per share is $24.60 and $0.60 respectively

Explanation:

a. The computation of the book value and market value of the firm is shown below:

The book value = Invested amount = $1,200,000

The market value = Invested amount + sales value

                             = $1,200,000 + $48,000,000

                             = $49,200,000

b. The computation of the price per share and the book value per share is shown below:

Price per share = Market value of firm ÷ Number of shares

                          = $49,200,000 ÷ $2,000,000

                          = $24.60

Book value per share = Book value of firm ÷ Number of shares

                          = 1,200,000 ÷ $2,000,000

                          = $0.60

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