Question

Refer to the preceding problem about Calrisian Enterprises.
The following data pertain to three divisions of Calrisian Enterprises. The company’s required rate of return on invested capital is 8 percent.


Required:
1. Explain three ways the Division I manager could improve her division’s ROI. Use numbers to illustrate these possibilities.
2. Suppose Division II’s sales margin increased to 25 percent, while its capital turnover remained constant. Compute the division’s newROI.


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  • CreatedApril 22, 2014
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