What is the division residual income

Assignment Help Accounting Basics
Reference no: EM131812908

Question - Ferris Wares is a division of a major corporation. The following data are for the latest year of operations:

Sales

$12,700,000

Net operating income

$1,054,100

Average operating assets

$5,000,000

The company's minimum required rate of return

16%

Required:

What is the division's return on investment (ROI)?

What is the division's residual income?

Reference no: EM131812908

Questions Cloud

Prepare the investment-related current asset balance sheet : Prepare the investment-related current asset balance sheet disclosures for Ophir Investments Inc. on December 31, 2013
Explore specific ethical standard that apply to the practice : Explore specific ethical standards that apply to the practice of professionals working in the human services field.
Statistical sampling to supplement : The Census Bureau proposed to use statistical sampling to supplement the door to door count for the 2000 Census. The Supreme Court ruled that
Comparison of an experimental sample : A common type of expertimental study involves the comparison of an experimental sample and a control sample
What is the division residual income : Ferris Wares is a division of a major corporation. What is the division's return on investment (ROI)? What is the division's residual income
Suppose that the average standardized score : Suppose that the average standardized score is 150 and the standard deviation of scores is 10. The college wants to make sure that
What would the cutoff need to be in order to accomplish that : What would the cutoff need to be in order to accomplish that?
Standard normal random variable : Assume that z is a standard normal random variable. Provide the values for each of the following probability questions:
Follows a binomial distribution : Assume that the random variable x follows a binomial distribution with p = 0.32 and n = 6.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd