Question: Suppose that I have an operating income of 90,000 and net assets with a fair market value of 300,000. Another company pays 450,000 for my net assets and business activities. How do I:
1. Calculate the ROI for Company A. based on its present operating income and the fair market value of its net assets? and,
2. How do I calculate what the ROI Takeover will earn if the operating income of the acquired net assets continues to be 90,000.