Question - Gordon Distributors has three operating divisions that are defined by geographical regions. The financial results for the most recent year are shown below. The firm's total assets using generally accepted accounting principles are shown at net book value (NBV).
Gordon uses a minium desired rate of return of 12% for selecting new projets and for evaluating the three divisions using residual income (RI). The firm's weighted-average cost of capital is 8%.
Calculate the ROI for each division.