Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment centers): soap products, skin lotions, and hair products. Information about the most recent year's operations follows. The information includes the value of intangible assets, including research and development, patents, and other innovations that are not included on HSC's balance sheet. Were these intangibles to be included in the financial statements (as they are for EVA), the increase in the balance sheet and the increase in after-tax operating income would be as given below: 10 points Intangibles" operating Value of Effect on Average Total Assets Intangibles $59,996,000 32,996,000 54,996,000 Division Income Income eBook Soap products skin lotions $3,246,000 2,746,000 4,996,000 $1,496,000 7,996,000 996,000 996,000 5,996,000 696,000 Hair producta Minimum desired rate of return 5.00 Coat of capital 4.00 Required: 1. Calculate the return on investment (ROI) for each division. (Round your answers to 2 decimal places. (i.e. .1234 12.34%) 2. Calculate the residual income (RI) for each division. 3. Calculate EVA for each division. Soap Products Skin Lotions Hair Products B.32% 9,08 % 1. Return on investment (ROI) 2. Residual income (RI) 5.41 % 248,000 1,096,200 2,246,200 3. EVA LO