(Answered) The current roi for our company as a whole is 12 percent

Academics

The current ROI for our company as a whole is 12 percent. Our minimum required rate of return on all investments is 10 percent.

One of our divisions has total assets of $4,000,000 with operating income of $800,000. We are considering the purchase of a small company that will require an investment of $800,000, and the synergies between the two companies will increase this division's operating income by $90,000.

Q1) What is the ROI for this division before and after the proposed purchase of this small company? Please show all relevant calculations.

Q2) What is the residual income for the division before and after the proposed purchase the small company?

Q3) If my annual bonus, as head of this division is based on increasing ROI, will I have an incentive to NOT purchase this small company?

View complete question

Chemistry, Academics

Category:- Chemistry
Reference No.:- M92885161
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Chemistry

1-write balanced equation for the double-replacement

1-Write balanced equation for the double-replacement precipitation reaction described, using the smallest possible integer coefficients. A precipitate forms when aqueous solutions of nickel(II) iodide and potassium c ...

Wat is the molarity to the hundredths place of 50 g hpo3

What is the molarity, to the hundredths place, of 5.0 g HPO3 in 300. mL of solution?

What is an example of a specific transition metal solution

What is an example of a specific transition metal solution, including the oxidation state of the transition metal, and the color of the solution, and the complex ion that the transition metal forms in that solution if ap ...

Calculate the dissociation constant of nh4ohaq if the

Calculate the dissociation constant of NH4OH(aq) if the degree of dissociation of 0.006 mol/kg solution is 0.053 and the activity coefficients of all species equal 1.

If 0050 mol hydrochloric acid hcl is mixed with 0050 mol of

If 0.050 mol hydrochloric acid (HCl) is mixed with 0.050 mol of sodium hydroxide (NaOH) in a "coffee cup" calorimeter, calculate the temperature change of 34.6 g of the resulting solution if the specific heat of the solu ...

Anbsp4260nbspgram sample of a hydrate ofnbspbai2nbspwas

A 42.60 gram sample of a hydrate of BaI 2 was heated thoroughly in a porcelain crucible, until its weight remained constant. After heating, 39.01 grams of the dehydrated compound remained. What is the formula of th ...

Why would the fact that red blood cells are malformed cause

Why would the fact that red blood cells are malformed cause a problem with their ability to carry oxygen? How would this affect a person stricken with this disease?

Ironiii oxide reacts with carbon monoxide according to the

Iron(III) oxide reacts with carbon monoxide according to the equation: Fe2O3(s)+3CO(g)→2Fe(s)+3CO2(g) A reaction mixture initially contains 22.15 g Fe2O3 and 15.98 g CO. Once the reaction has occurred as completely as po ...

Nitro glyerine is an explosive used by the mining industry

Nitro glyerine is an explosive used by the mining industry. It detonates according to the following equation: 4C 3 H 5 N 3 O 9 (l)→ 12CO 2 (g) + 6N 2 (g) +10H 2 O(g) + O 2 (g) What volume is occupied by the gases produce ...

Questionwhat is the ph of the solution that results from

Question: What is the pH of the solution that results from mixing 10.00ml of 0.050 M perchloric acid with 30.00ml of 0.040 M barium hydroxide

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Chemistry Expert