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BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections: Germany Canada Invested
BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections: Germany Canada Invested capital (total assets) $301,000 $2,011,000 Net operating income $72,240 $721,949 Required rate of return 9% 9% Weighted average cost of capital 8% 8% Current liabilities $7,200 $46,900 After-tax income $49,600 $286,500 Calculate each division's ROI. (Round answers to 2 decimal places, e.g. 15.24%.) Germany Canada Calculate each division's residual income. Germany Canada Calculate each division's EVA. Germany Canada Residual income $ $ ROI % % EVA $ $
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