Reference no: EM132793251
Question - The following summary information is available regarding CPL Plc.
CPL profit plan For the year ending Dec. 31, 2018
Sales revenue $5,600,000
Net income $896,000
Total Assets $7,000,000
Operating Assets $4,500,000
Total Liabilities $2,100,000
WACC 25%
Tax rate 20%
Return from project A $248,000
Cost of project A $196,000
Required - Compute and analyze the:
-Return on Investment (ROI) for project A
-Return on Equity (ROE) and its components for the company.
-Residual income (RI)