Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000   $198,000   (a)     12%   (b)       (c)      $800,000   (d)   (e)     (f)     $120,000   $40,000   $750,000   (g)   14%   (h)     $90,000   (i)      $1,800,000   $441,000   (j)     15%   (k)       (l)      Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. a.   fill in the blank 1 % b.   $fill in the blank 2   c.   $fill in the blank 3   d.   $fill in the blank 4   e.   fill in the blank 5 % f.   fill in the blank 6 % g.   $fill in the blank 7   h.   fill in the blank 8 % i.   $fill in the blank 9   j.   fill in the blank 10 % k.   $fill in the blank 11   l.   $fill in the blank 12

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
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Determining missing items in return and residual income computations

Data are presented in the following table of returns on investment and residual incomes:

Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income
$1,200,000   $198,000   (a)     12%   (b)       (c)     
$800,000   (d)   (e)     (f)     $120,000   $40,000  
$750,000   (g)   14%   (h)     $90,000   (i)     
$1,800,000   $441,000   (j)     15%   (k)       (l)     

Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place.

a.   fill in the blank 1 %
b.   $fill in the blank 2  
c.   $fill in the blank 3  
d.   $fill in the blank 4  
e.   fill in the blank 5 %
f.   fill in the blank 6 %
g.   $fill in the blank 7  
h.   fill in the blank 8 %
i.   $fill in the blank 9  
j.   fill in the blank 10 %
k.   $fill in the blank 11  
l.   $fill in the blank 12  
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