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Austin lnce, manafactures a variety of products and is organized into three business segments (investment centers): A, B, and C. Minimum desired rate of return
Austin lnce, manafactures a variety of products and is organized into three business segments (investment centers): A, B, and C. Minimum desired rate of return for the company is 6.00%, while cost of capital is 5.00%. Information about th most recent year's operutions follows. The informasion includes the value of intangible assets, including research & development, patents, and other innovations that are not included on the coenpany's balance sheet. Were these intangbles to be included in the financial statements (as they are for EVAB), the increase in the balance sheet asd the increase in afler-tax eet income are given below: Regeired) a. Cakculate the ROI for each Division. b. Calculate the tesidual income (RI) for each Division. c. Calculate EVA 6 for cach Division. d) Comenent oo your answers for ROL, R.I, and EVA
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