9. Smith Company reports the following information:

Net operating profit after taxes $500,000 Adjusted net operating profit after taxes $650,000 Average invested capital $500,000 Adjusted average invested capital $550,000 After-tax cost of capital 10%

The adjusted figures reflect adjustments used by Stern Stewart & Company. What is the EVA for Sanchez Company? A) $430,000 B) $450,000 C) $600,000 D) $595,000

10. Juan Company's after-tax operating income was $882 million. Average total assets were $5,900 million and average total stockholders' equity was $4,050 million. Juan Company's cost of capital was 10%. Juan Company uses total assets as the measure of invested capital. What is Juan Company's residual income? A) $187 million B) $292 million C) $477 million D) $667 million

11. Julie Company's revenues for the year are $300 and average invested capital for the year is $240. Expenses are currently 50% of revenues. Julie Company's current return on investment is ________. A) 50% B) 62.5% C) 80% D) 100%