requires à minimum return on its investments of 5%, what is their Pesidual income? * NUBD Co. has the following information available for one of its divisions: | Average operating assets Return on investment Sales |P5,000,000 | 40% |P8,000,000 O P1,250,000 O P4,500,000

requires à minimum return on its investments of 5%, what is their Pesidual income? * NUBD Co. has the following information available for one of its divisions: | Average operating assets Return on investment Sales |P5,000,000 | 40% |P8,000,000 O P1,250,000 O P4,500,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.1.3MBA: Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern...

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Question

If NUBD Co. requires a minimum return on its investments of 15%, what is their residual
income? *
NUBD Co. has the following information available for one of its divisions:
Average operating assets
Return on investment
Sales
P5,000,000
40%
P8,000,000
P1,250,000
O P4,500,000
P6,750,000
P750,000

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