The following is Tennis Today's financial statement for the year ending December 31, 2006, in total and by division:

\section*{Required}
A. If the stockholders own shares of the company in total, and not in the individual divisions, how can the divisional managers' performance be evaluated in terms of building stockholder wealth?
B. From an ROI perspective, which of the two divisions has shown better performance? (Assume that ending assets reflect average operating assets for the year.)

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Assets: Cash Accounts receivable Inventory Fixed assets Total $ 46,000 89,000 198,000 1,850,000 $2,183,000 Liabilities: Total Accounts payable $ 65.000 Bank debt Total Stockholders' equity Total liabilities and equity Revenues Expenses Net income 1,620,000 $1,685,000 498.000 $2,183,000 $1,500,000 1,150,000 $ 350,000 Division A $ 10,000 37,000 72.000 900,000 $1,019,000 $ 28,000 800,000 $ 828.000 $ 500,000 300,000 $ 200,000 Division B $ 36,000 52,000 126.000 950,000 $1,164,000 $ 37,000 820,000 $ 857,000 $1,000,000 850,000 $ 150,000