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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Suppose Target Co. had operating income of $90,000 and net assets with a fair market value of $300,000. Takeover Co. pays $450,000 for Target Co.'s net assets and business activities. a. Calculate ROI for Target Co. based on its present operating income and the fair market value of its net assets. b. Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $90,000.
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