Question: Based on the above information compute the following: 1. Compute the Return on investment (ROI) of each of the business segments. 2. Compute the Residual

Based on the above information compute the following: 1. Compute the Return on investment (ROI) of each of the business segments. 2. Compute the Residual Income. 3. Assume that SMPH required a minimum required rate of return of 12%,20%,10% and 7% for the mall, residential, commercial and hotel and convention respectively and a business opportunity that would yield a return of 15% is presented to each business unit I. If performance is measured by ROI which division or divisions will likely accept the opportunity? reject? why? II. If performance is measured by residual income which division will likely accept the opportunity? reject? why? Based on the above information compute the following: 1. Compute the Return on investment (ROI) of each of the business segments. 2. Compute the Residual Income. 3. Assume that SMPH required a minimum required rate of return of 12%,20%,10% and 7% for the mall, residential, commercial and hotel and convention respectively and a business opportunity that would yield a return of 15% is presented to each business unit I. If performance is measured by ROI which division or divisions will likely accept the opportunity? reject? why? II. If performance is measured by residual income which division will likely accept the opportunity? reject? why
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