Financial data for Joel de Paris, Inc., for last year follow:
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The company paid dividends of $15,000 last year. The ?oInvestment in Buisson, S.A.,?? on the balance sheet represents an investment in the stock of another company.
Required:
1. Compute the company’s margin, turnover, and return on investment (ROT) for last year.
2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 15%. What was the company’s residual income lastyear?