Terms of return on investment and residual income

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Reference no: EM131211770

Consider the following data, which relate to the two divisions of McIntyre Products: Division 1 Division 2 Total assets $68,300,000 $23,000,000 Noninterest-bearing current liabilities 4,470,000 2,270,000 NOPAT 12,200,000 5,970,000 Required rate of return 10% 10% Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for McIntyre shareholders?

Reference no: EM131211770

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