Question: CALCULATOR PRINTER VERSION Exercise 12-11 Consider the following data, which relate to the two divisions of Marx Products: Division 1 Division 2 Total assets $69,300,000
CALCULATOR PRINTER VERSION Exercise 12-11 Consider the following data, which relate to the two divisions of Marx Products: Division 1 Division 2 Total assets $69,300,000 $22,700,000 Noninterest-bearing current abties 4,520,000 2,370,000 11,400,000 5,000,000 Required rate of return NOPAT 10% Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for Marx shareholders? (Round Ror to 2 de place, .g. 15.254. Enter negative answers preceding either sign, e.g. -45 or in parentheses, e.. (45)) Division 1 Residual income/EVA had highest return on investment had highest residual income
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