Problem:
Capital inv. has three divisions. each division's required rate of return is 15% planned operating for 20x5 are as follows:
A : operating income 15,000,000 investment 100,000,000
B : 25,000,000 125,000,000
C : 11,000,000 50,000,000
the company is planning an expansion, which will require each division to increase its investments by 25,000,000 and its income by 4,500,000
A. compute the current ROI for each division.
B. compute the current residual income for each division