Exercise 19-26 (Algo) Return on Investment and Residual Income [LO 19-1, 19-2] Consider the following data...

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Exercise 19-26 (Algo) Return on Investment and Residual Income [LO 19-1, 19-2] Consider the following data (in millions) from Trident Financial Incorporated, which has two main divisions, mortgage loans and consumer loans: Average total assets Operating income. Return on investment (ROI) Required: 1. Based on ROI, which division is more successful? Mortgage loans O Consumer loans Mortgage Loans $ 2,700 $ 540 20.00% Consumer Loans $ 17,250 $ 2,070 12.00% 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for each division if the minimum desired rate of return is (a) 10%, (b) 15%, and (c) 20 %? (Leave no cells blank. Negative amounts should be indicated by a minus sign. Enter your answers in millions.) (a) 10% (b) 15% Residual Income (RI) Mortgage: Loans Consumer Loans 20% Exercise 19-26 (Algo) Return on Investment and Residual Income [LO 19-1, 19-2] Consider the following data (in millions) from Trident Financial Incorporated, which has two main divisions, mortgage loans and consumer loans: Average total assets Operating income. Return on investment (ROI) Required: 1. Based on ROI, which division is more successful? Mortgage loans O Consumer loans Mortgage Loans $ 2,700 $ 540 20.00% Consumer Loans $ 17,250 $ 2,070 12.00% 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for each division if the minimum desired rate of return is (a) 10%, (b) 15%, and (c) 20 %? (Leave no cells blank. Negative amounts should be indicated by a minus sign. Enter your answers in millions.) (a) 10% (b) 15% Residual Income (RI) Mortgage: Loans Consumer Loans 20%