Question: 5 20 points Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in
5 20 points Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to benefit five years. R&D spending is made uniformly throughout the year. UEI has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows. Consumer Sales revenue Divisional income Divisional investment Current liabilities R&D eBook Print Commercial $58,000 $91,000 11,680 13,200 36,500 41,250 4,600 4,400 4,600 4,600 Evaluate the performance of the two divisions assuming UEI uses return on investment (ROI). Required: References ROI of Consumer division % ROI of Commercial division % Which division performed better?
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