Ashton 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. Ashton Corporation requires a 10% minimum return on investment.

The following information is available for the year just ended.

Please see attachment

Ashton Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisio The following information is available for the year just ended. Book Value Division al Operatin g of Assets Income Gross Division Bristol $800,000 $94,980 Darden 745,700 91,050 Gregory 441,000 57,500 (a) Calculate return on investment. (Round ROI to 2 decimal places, e.g. 5.12%.) Return on Investment Bristol Darden Gregory % % % Which division performed the best? (b) Calculate residual income. (If the amount is negative then enter with a negative sign preceding the number e. Residual Income Bristol $ Darden $ Gregory $ Which division performed the best? (c) Assume that Ashton's weighted-average cost of capital is 6% and its tax rate is 24%. Calculate economic value added. (I Economic Value Added Bristol $ Darden $ Gregory $ Which division performed the best? ivision. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Ashton Corporatio eceding the number e.g. -5,125 or parenthesis. e.g. (5,125).) economic value added. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or paren rofitability. Ashton Corporation requires a 10% minimum return on investment. umber e.g. -5,125 or parenthesis. e.g. (5,125).)