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Consider the following data for two divisions of the same company:

	North Woods	Midwest
Sales	$3,000,000	$10,000,000
Average operating assets	1,000,000	3,000,000
Operating income	140,000	330,000
Minimum required return	8%	8%

Required

1. Compute residual income for each division.

2. Compute ROI for each division.

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Corporate Finance, Finance

Category:- Corporate Finance
Reference No.:- M91619197

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