The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted average cost of capital (WACC) of 3%. Allied's corporate tax rate is 30%. $700,000 105,000 Sales Operating income Total assets 1,600,000 400,000 Current liabilities What is the division's Return on Investment (ROI)? O A. 57.14% O B. 43.75% O C. 6.56% O D. 15.00%
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- The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 14%. Management calculated a weighted average cost of capital (WACC) of 5%. Rainy's corporate tax rate is 30%. $900,000 Sales 315,000 1,700,000 700,000 Operating income Total assets Current liabilities What is the division's Residual Income (RI)? O A. $189,000 O B. $77,000 O C. $315,000 O D. $126,000The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC) of 7%. Allied's corporate tax rate is 30%. Sales $900,000 Operating income 180,000 Total assets $1,800,000 Current liabilities 800,000 What is the division's Return on Investment (ROI)? Question 13 options: 50.00% 10.00% 88.89% 20.00%
- Lewis Company has operating income of $265,000. Its return on investment (ROI) is 53%, while its target rate of return is 7%. The total assets of Lewis Company may be closest to O A. $140,450. O B. $3,785,714. O C. $18,550. O D. $500,000The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 11% Management calculated a weighted-average cost of capital (WACC) of 2%. Rainy's corporate tax rate is 30 %. Sales $900.000 Operating income $225,000 Total assets $1,700,000 Current liabilities $800,000 What is the division's Residual Income (RI)?Yale Corporation had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales $25,000,000 Operating income 1,000,000 Total assets 2,000,000 Current liabilities 5,670,000 What is the division's Return on Investment (ROI)?
- Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? OA. $100,000 O B. $4,400,000 Ⓒ C. $700,000 O D. $280,000 $11,000,000 1,100,000 4,000,000 780,000Return on Investment (ROI) and Residual Income Financial data for Joel de Paris, Inc., for last year follow: The company paid dividends of $15,000 last year. The “Investment in Buisson, S.A.,” on the balance sheet represents an investment in the stock of another company. The company’s minimum required rate of return of 15%. Required: 1. Compute the company’s average operating assets for last year. 2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Hint: Should you use net income or net operating income in your calculations?) 3. What was the company’s residual income last year?Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? A. 68.57% B. 171.43% C. 40% O D. 22.57% $6,000,000 2,400,000 3,500,000 790,000 CO
- The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 8%. The company's corporate tax rate is 40%. Sales $800,000 240,000 Operating income Total assets $1,100,000 Current liabilities 500,000 What is the division's capital turnover? OA. 2.20 B. 3.33 OC. 0.73 OD. 4.58The R&B Division of MoTown Recording Corporation defines return as after-tax income and had the following results last year. Sales $10,000,000 Operating income $ 2,200,000 Average total invested capital $4,000,000 Current liabilities $ 2,500,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Calculate the return on investment (ROI). IMPORTANT: Provide your answer in the following format: 0.## (Your answer must be in decimal format). Answer:Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 5% and the weighted average cost of capital is 25%. Its effective tax rate is 30%. $13,000,000 1,300,000 1,500,000 Sales Operating income Total assets Current liabilities 810,000 What is the division's sales margin? O A. 10.00% O B. 54.00% O C. 866.67% O D. 86.67%