The Walnut Division of Benton Corp

question 38

Essay

The Walnut Division of Benton Corp.has average invested assets of $22,500,000.Sales revenue of $27,000,000 results in an operating income of $2,379,500.The hurdle rate is 8%.
a.Calculate the return on investment.
b.Calculate the profit margin.
c.Calculate the investment turnover.
d.Calculate the residual income.

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Definitions:

Trans-fatty Acids

Types of unsaturated fats that are transformed through hydrogenation, raising the risk of heart disease more than other types of fats.

Dehydration Reaction

A chemical reaction that involves the loss of a water molecule from the reacting molecule.

Functional Groups

Functional groups are specific groups of atoms within molecules that are responsible for the characteristic chemical reactions of those molecules.

OH

Sometimes refers to the hydroxyl group, a functional group consisting of an oxygen atom covalently bonded to a hydrogen atom.