a Coptermagic Company supplies helicopters to corporate clients. Coptermagic has two sources of funds: long term debt with a market and book value of $32 million issued at an interest rate of 10%, and equity capital that has a market value of $18 million and book value of $8 million. The cost of equity capital for Coptermagic is 15%, and its tax rate is 30%. Coptermagic has profit centres in two divisions that operate autonomously. The company's results for the past year are as follows: Operating Income Assets Current Liabilities Brandon $1,750,000 $11,500,000 $2,500,000 Hamilton 2,400,000 9,000,000 3,500,000 The company's WACC is 11% and is used as the required rate of return. Required: 1. Calculate the ROI and residual income for each division, assuming that investment is measured as assets less current liabilities RON Brandon Hamilton ROI RI Brandon Hamilton RI 2. Compute each division's Economic Value Added Brandon Hamilton After-tax operating income WACC Total assets Current liabilities EVA