Axel Corporation (which has a weighted-average cost of capital of 12%) has two divisions with the following information:

	Beta Division	Cal Division
Total Assets	$720,000	$550,000
Current Liabilities	$220,000	$110,000
After-Tax Operating Income	$105,000	$110,000
ROI	15%	20%

Which of the following is true?

Multiple Choice

• Beta is more profitable and has a higher EVA than Cal.

• Beta is more profitable than Cal, but Cal is generating a greater return relative to its resources than Beta.

• Beta has a lower ROI but a higher EVA than Cal.

• Cal is more profitable than Beta, but Beta is generating a greater return relative to its resources than Cal.