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Calculate the residual income for the Avila Division

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Reference no: EM132701559

Problem - The Avila Division of Maldonado Company had operating income last year of $136,400 and average operating assets of $1,900,000. Maldonado's minimum acceptable rate of return is 9%.

Calculate the residual income for the Avila Division.

Was the ROI for the Avila Division greater than, less than, or equal to 9%?

Reference no: EM132701559

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