23-16 ROI, comparisons of three companies. (CMA, adapted) Return on investment...
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23-16 ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often expressed as tollows: Income Income Revenues Investment Revenues Investment 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the following blanks: Required Revenues Income Investment Income as a percentage of revenues Investment turnover ROI Companios in Samo Industry A B $1,000,000 $500,000 ? $ 100,000 $ 50,000 ? $ 500,000 $5,000,000 ? ? 0.5% 2 ? 2 ? 1% 2 ? After lling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit
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