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xlynnnguyenx xlynnnguyenx
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7 years ago
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of​ 7%. Management calculated a weightedminus−average cost of capital​ (WACC) of​ 5%. Allied's corporate tax rate is​ 30%.

Sales: ​$700,000
Operating income :$175,000
Total assets: $1,500000
Current liabilities : ​600,000

What is the​ division's Return on Investment​ (ROI)?
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#1
7 years ago
Similar Question
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of​ 7%. Management calculated a weightedminus−average cost of capital​ (WACC) of​ 5%. Allied's corporate tax rate is​ 30%. Sales ​$700,000 Operating income ​$175,000 Total assets ​$1,500000 Current liabilities ​600,000 What is the​ division's Residual Income​ (RI)?

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#2
5 years ago
Thank you
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