Business, 13.12.2019 01:31 brookefrancett
Red earth company has two divisions, the okla division and the homa division. last year, the okla division earned $66,000 using average operating assets of $550,000. last year, the homa division earned $260,000 using average operating assets of $2,000,000. minimum required rate of return for red earth is 9 percent.
a. for the okla division, residual income
b. for the homa division, residual income
now assume that the minimum required rate of return for red earth is 12 percent. if an amount is zero, enter "0".
c. for the okla division, residual income
d. for the homa division, residual income
Answers: 1
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