Use the Following Information to Answer Question Hays Company Has Set a Target Return on Investment (ROI)

question 120

Essay

Use the following information to answer Question. Renfro Company has two divisions, the Restaurants Division and the Commissary Division. The following information was gathered for the two divisions in 2012: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Restaurants } \\\text { Division }\end{array} & \begin{array} { l } \text { Commissary } \\\text { Division }\end{array} \\\hline \text { Operating Income } & \$ 4,000,000 & \$ 1,500,000 \\\hline \text { Operating Assets } & \$ 30,000,000 & \$ 10,500,000 \\\hline\end{array}$$
Hays Company has set a target return on investment (ROI) of 12% for both divisions.
Restaurants and Commissary are the only divisions of Renfro Company. The company has $1,000,000 in operating assets that are not assigned to either of the divisions and $200,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?

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Definitions:

AUG

A codon in mRNA that not only codes for the amino acid methionine but also serves as the start signal for protein synthesis.

UAA

One of the three stop codons in the genetic code, signaling the end of protein synthesis during translation.

5' Cap

A modified form of guanine nucleotide added to the 5' end of eukaryotic mRNA, playing a role in mRNA stabilization and initiation of translation.

Poly-A Tail

A sequence of adenine nucleotides added to the 3' end of newly synthesized messenger RNA molecules.