The Campus Division of All-States Bank has assets of $2,700 million. During the past year, the division had profits of $270 millon. Al- States Bank has a cost of capital of 4 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division, (Enter your answer as a percentage rounded to 1 decimal place (1.e., 32.1).) Divisional ROI b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A. Compute the divisional ROI for the Campus Division. B. Compute the divisional RI for the Campus Division.
The Campus Division of Al-States Bank has assets of $2,700 million. During the past year, the division had profits of $270 million. All-
States Bank has a cost of capital of 4 percent. Ignore taxes.
Required:
a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (1.e., 32.1).)
Divisional ROI
b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.)
Divisional RI
Transcribed Image Text:The Campus Division of Al-States Bank has assets of $2,700 million. During the past year, the division had profits of $270 million. All- States Bank has a cost of capital of 4 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (1.e., 32.1).) Divisional ROI b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI
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