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2. The following data are available for two divisions of Solomons Company North South Division operating profit Division Division 6,000,000 40,000,000 Division investment 30,000,000 320,000,000

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2. The following data are available for two divisions of Solomons Company North South Division operating profit Division Division 6,000,000 40,000,000 Division investment 30,000,000 320,000,000 The cost of capital for the company is 8 percent. Ignore taxes. Required. 1. If the company measures performance using ROl, which division had the better performance? If the company measures performance using economic value added, which division had the better performance? There are no current liabilities. 2. 3, would your evaluation change if the company's cost of capital were 16% Why

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