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Halifax Miracle Corporation has two divisions: Mobile Division and TV Division. The company reported the following results for the Mobile Division for the current year.

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Halifax Miracle Corporation has two divisions: Mobile Division and TV Division. The company reported the following results for the Mobile Division for the current year. Mobile Division Sales $4,500,000 Operating income 500,000 Total assets 2,500,000 Current liabilities 600,000 The company CEO, Sylvia Davis, has set a target rate of return equal to 13% for each of the company's divisions. The company's finance manager reported that the WACC is 8%. The company's effective tax rate is 35%. Required (Show all computations): 1. Compute the following performance evaluation measures for the Mobile Division: (1) Return on Assets, (2) Residual Income, and (3) Economic Value Added. (10 marks) 2. For each of the above measures, determine whether the performance of the Mobile Division is satisfactory or not, explaining how you arrived at your conclusion. (6 marks)

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