The Campus Division of All-States Bank has assets of $1,300 million. During the past year, the division had profits of $285 million. All- States Bank has a cost of capital of 6 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Divisional ROI % b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI

The Campus Division of All-States Bank has assets of $1,300 million. During the past year, the division had profits of $285 million. All- States Bank has a cost of capital of 6 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Divisional ROI % b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...

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