For the period just ended, United Corporation's Delta Division reported profit of $31.9 million and invested capital of $220 million. Assuming an imputed interest rate of 12%, which of the following choices correctly denotes Delta's return on investment (ROI) and residual income? $$\begin{array} { l l l }
& \text { ROI } & \text { Residual Income } \
\text { A. } & 12.0 \% & \$ 5.5 \text { million } \
\text { B. } & 12.0 \% & \$ 5.5 \text { million } \
\text { C. } & 14.5 \% & \$ 5.5 \text { million } ) \
\text { D. } & 14.5 \% & \$ 5.5 \text { million } \
\text { E. } & 14.5 \% & \$ 26.4 \text { million }
\end{array}$$

Question

For the period just ended, United Corporation's Delta Division reported profit of $31.9 million and invested capital of $220 million. Assuming an imputed interest rate of 12%, which of the following choices correctly denotes Delta's return on investment (ROI) and residual income? $$\begin{array} { l l l } 
& \text { ROI } & \text { Residual Income } \
\text { A. } & 12.0 \% & \$ 5.5 \text { million } \
\text { B. } & 12.0 \% & \$ 5.5 \text { million } \
\text { C. } & 14.5 \% & \$ 5.5 \text { million } ) \
\text { D. } & 14.5 \% & \$ 5.5 \text { million } \
\text { E. } & 14.5 \% & \$ 26.4 \text { million }
\end{array}$$

Quizplus · Accepted Answer

The Answer of For the period just ended, United Corporation's Delta Division reported profit of $31.9 million and invested capital of $220 million. Assuming an imputed interest rate of 12%, which of the following choices correctly denotes Delta's return on investment (ROI) and residual income? $$\begin{array} { l l l } 
& \text { ROI } & \text { Residual Income } \
\text { A. } & 12.0 \% & \$ 5.5 \text { million } \
\text { B. } & 12.0 \% & \$ 5.5 \text { million } \
\text { C. } & 14.5 \% & \$ 5.5 \text { million } ) \
\text { D. } & 14.5 \% & \$ 5.5 \text { million } \
\text { E. } & 14.5 \% & \$ 26.4 \text { million }
\end{array}$$

For the Period Just Ended, United Corporation's Delta Division Reported