Alternate Problem E: Goodwin Company has three segments: 1, 2, and 3. Data regarding these segments follow: 48 points Contribution to indirect expenses Assets directly used by and identified with the segment Segment 1 $432,000 3,600,000 Segment 2 $200,800 1,440,000 Segment 3 $72,000 360,000 I 0 Requirement a: Calculate the return on investment for each segment. Rank them from highest to lowest. Requirement b: Assume the cost of capital is 10% for a segment. Calculate the residual income for each segment. Rank them from highest to lowest. 1 2 Requirement : Repeat (b), but assume the desired cost of capital is 14 per cent. Rank the segments from highest 3 to lowest Alt. Problem E (part a) Segment 1 Segment 2 Segment 3 Segment Income B Investment base (assets) ROI (Express as a percentage) Rank: (Hint: Round the percentage ROI to 1 decimal place or the answer will be marked incorrect.) Alt. Problem E (part b) Segment 1 Segment 2 Segment 3 Segment Income 5 Investment base (assets) 5 Cost of Capital Min. Income 3 Residual income (Investment Cost of capital) (Seg Income-Min. Income) Rank Alt. Problem E (part c) Segment 1 Segment 2 Segment 3 3 Segment Income Investment base (assets) 5 Cost of Capital 5 Min. Income Residual income Rank: (Investment x Cost of capital) (Seg Income. Min. Income)