The campus division of all-states bank has assets of $1,800 million. during the past year, the division had profits of $225 million. all-states bank has a cost of capital of 4 percent. ignore taxes.
required:
(a) compute the divisional roi for the campus division. (enter your answer as a percentage rounded to 1 decimal place (i. e., 32.1)
(b) compute the divisional ri for the campus division. (enter your answer in dollars, not in millions.)

(a) 12.5%;

(b) $153 million

Explanation:

Given that,

Campus Division of All-States Bank,

Assets = $1,800 million

Division profits = $225 million

Cost of capital = 4 percent

(a) Divisional ROI =

                             =

                             = 12.5%

(b) Divisional RI = Profits - Assets × cost of capital

                          =  $225 million - $1,800 million × 0.04(4%)

                          = $225 million - $72 million

                          = $153 million

answer; commerce clearing house;

options ?

explanation: