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7 Aug 2018

EXERCISE 11-9 Return on Investment (ROI) and Residual Income Relations (L011-1, L011-2] A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: Company $9,000,000 $ ? $3,000,000 18% $7,000,000 $ 280,000 $ ? 14% $4,500,000 $ ? $1,800,000 Net operating income ........... Average operating assets ............ Return on investment (ROI) ........... Minimum required rate of return: Percentage .......... Dollar amount .... Residual income ................... 16% $ 320,000 $ ? 15% $ ? $ 90,000

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Tod Thiel
Tod ThielLv2
8 Aug 2018

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