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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Padstow Fabrics Comapny has two retail division, which reported the following results for last year:
Finishing Division Dressmakinf Division
Profit $900 000 $200 000
Average invested capital $6 000 000 $1 000 000
ROI 15% 20%
Required:
1 Which was the more successful division? Think carefully about this, and explain yoir answer.
2 Calculate each divisionn's residual income under each of the following assumptions about the firm's minimum required rate of return:
(a) 12 per cent
(b) 15 per cent
(c) 18 per cent
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