Explore BrainMass

Explore BrainMass

    ROI and operating income

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose that I have an operating income of 90,000 and net assets with a fair market value of 300,000. Another company pays 450,000 for my net assets and business activities. How do I:

    1. Calculate the ROI for Company A. based on its present operating income and the fair market value of its net assets? and,

    2. How do I calculate what the ROI Takeover will earn if the operating income of the acquired net assets continues to be 90,000.

    Thank you!

    © BrainMass Inc. brainmass.com June 3, 2020, 10:05 pm ad1c9bdddf
    https://brainmass.com/business/accounting/roi-operating-income-214066

    Solution Preview

    Suppose that I have an operating income of 90,000 and net assets with a fair market value of 300,000. Another company pays 450,000 for my net assets and business activities. How do I:

    1. Calculate the ROI for Company A. based on its present operating ...

    Solution Summary

    This provides the steps to calculate the ROI and operating income.

    $2.19

    ADVERTISEMENT