2 of 2 View Policies Current Attempt in Progress -16 1 Wildhorse Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Wildhorse Corporation requires a 10% minimum return on investment. The following information is available for the year just ended. Division Divisional Operating Assets Divisional Operating Income Invested Capital Ashton Drye $900,000 820,000 $99,000 $200,000 94,300 Poole 500,000 60,000 70.000 120,000 (a) Calculate return on investment. (Round ROI to 2 decimal places, eg. 5.12%) Return on Investment Ashton Drye Poole Chapter 10 Homework Question 2 of 2 (a) Calculate return on investment. (Round Rot to 2 decimal places. 5.12%) Ashton Drye Poole Return on Investment Which division performed the best -16 1 (b) Calculate residual income. (If the amount is negative then enter with a negative sign preceding the number...-5.125 or parentheses, eg (5.125) Residual Income 5 Ashton $ Drye Poole $ MacBook Air Poole Which division performed the best? -16 (c) Assume that Wildhorse Corporation's weighted average cost of capital is 6% and its tax rate is 21% Calculate economic value added. (If the amount is negative then enter with a negative sign preceding the number, eg. -5,125 or parentheses, es (5,125).) Economic Value Added $ Ashton $ Drye $ Poole Which division performed the best? eTextbook and Media Save for Later Attempts: 0 of 3 used St An