Question: How much would each division need to generate in new operating income in the fourth quarter to reach the company's desired ROl of 12% at

 How much would each division need to generate in new operating
income in the fourth quarter to reach the company's desired ROl of

How much would each division need to generate in new operating income in the fourth quarter to reach the company's desired ROl of 12% at year-end, assuming each division uses its available $48,000 to purchase a new investment? Assume it is a $48,000 nondepreciable assef but still included in operating assets, It is the cnd of the third quarter, and Patricia is evaluating the performance of two key divisions in the company. Both divisions had $48,000 cash available for investment in the fourth quarter, so Patricia is now analyzing each division before a potential investment. She has gathered the following condensed income statements and selected information from the balance sheet for cach division. The company's minimum required rate of return is 8%, while its weighted average cost of capital is 8% its effective tax rate is 25%

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