Question:

Return on Investment and Residual ome Johnson Company has

Last updated: 3/31/2024

Return on Investment and Residual ome Johnson Company has

Return on Investment and Residual ome Johnson Company has two sources of funds long term debt and equity capital Johnson Company has profit centers in the following locations with the following net incomes and total assets Las Vegas Net Income Assets 1 310 000 4 000 000 1 550 000 8 000 000 Dallas Tampa 2 390 000 12 000 000 a Calculate ROI for each profit center and rank them from highest to lowest based on ROI Round ROI to the nearest whole percentage Las Vegas Dallas Tampa ROI Rank 0 0 0 b Calculate residual income for each profit center based on a desired ROI of 5 and rank them from highest to lowest based on residual income RI Rank