A Multinational Corporation Established a Division in Ireland as a Subsidiary

question 34

Essay

A multinational corporation established a division in Ireland as a subsidiary corporation, with an initial investment in total assets of 13 million €'s, which cost the company $19,240,000 Canadian at the time.The company sent an experienced manager to run the division, and gave her a target of 12% required rate of return, promising a bonus if this was met and/or exceeded.After one year, the subsidiary manager was pleased to report a 15% ROI.You have been able to determine the following data pertaining to the subsidiary:
Required:
a.Calculate the subsidiary's income in €'s.
b.Calculate the subsidiary's return on investment in Canadian dollars.
c.Calculate the subsidiary's residual income in Canadian dollars.

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Definitions:

Monocyte

A type of white blood cell that is part of the immune response, involved in the removal of pathogens and dead or damaged cells from the blood.

Mono-

A prefix meaning single or one, used in various scientific and medical terminologies.

Thrombin

A blood plasma enzyme that initiates blood clotting by transforming fibrinogen into fibrin.

Thromboplastin

A plasma protein that catalyzes the conversion of prothrombin to thrombin, playing a crucial role in the blood clotting process.