Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
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Complete the following table
Sales
Operating Income
Average Operating Assets
Return on Investment
Minimum Required Rate of return
%
Residual Income
A
400,000
160,000
20%
15%
B
Company
750,000
45,000
18%
50,000
C
600,000
150,000
12%
6,000
Transcribed Image Text:Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000
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