Solution-Which is the more successful division in terms of

Which is the more successful division in terms of koi

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Reference no: EM13512998

Consider the following:

	000s omitted
	Division A	Division B
Operating assets	$5,000	$12,500
Operating income	$1,000	$ 2,250
ROI	20%	18%

1. Which is the more successful division in terms of KOI?

2. Using 16 percent as the minimum required rate of return, compute the residual income for each division. Which division is more successful under this rate?

Reference no: EM13512998

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Which is the more successful division in terms of koi

Reference no: EM13512998

Reference no: EM13512998

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