Chapter 23, Problem 30E Bookmark Show all steps Problenm ROI, RI, EVA, and performance evaluation. Cora Manufacturing makes fashion products and competes on the basis of quality and leading-edge designs. The company has two divisions clothing and cosmetics. Cora has $5,000,000 invested in assets in its clothing division. After-tax operating income from sales of clothing this year is $1,000,000. The cosmetics division has $12,500,000 invested in assets and an after-tax operating income this year of $2,000,000. The weighted-average cost of capital for Cora is 6%. The CEO of Cora has told the manager of each division that the division that "performs best" this year will get a bonus 1. Calculate the ROI and residual income for each divis which manager will get the bonus. What are the advar 2. The CEO of Cora Manufacturing has recently heard called EVA. The CEO has the accountant calculate ad finds that the adjusted after-tax operating incomes are clothing division has $470,000 of current liabilities, w Required current liabilities. Using the preceding information, calculate the EVA for each which manager will get the bonus. What nonfinancial measures could Cora use to evaluate divisional performances 3. Step-by-step solution There is no solution to this problem yet. Get help from a Chegg subject expert. Ask an expert