Consider the following data for three divisions of a company, X, Y, and Z:
Required:
Calculate return on investment (ROI), return on sales (ROS), and asset turnover (AT) for each division. Round your answers to two decimal places where appropriate.
Definitions:
Discount Rate
The interest rate used to discount future cash flows of a financial instrument to obtain the present value.
Purchased Goodwill
An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets at the acquisition date.
Market Value
The existing rate at which an asset or service is offered for buy or sell within the marketplace.
Amortize Intangible Assets
The process of systematically reducing the recorded cost of intangible assets over their useful life or legal life, whichever is shorter.
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