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Helg The following data are available for two divisions of Solomons Company, Division operating profit Division Investment North Division South Division $ 7,175,000 $ 33,100,000

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Helg The following data are available for two divisions of Solomons Company, Division operating profit Division Investment North Division South Division $ 7,175,000 $ 33,100,000 41,000,000 331,000,000 The cost of capital for the company is 6 percent. Ignore taxes. Required: a-1. Calculate the ROI for both North and South divisions. a-2. If Solomons measures performance using ROI, which division had the better performance? b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) b-2. If Solomons measures performance using economic value added, which division had the better performance? c. Would your evaluation change if the congpany's cost of capital was 15 percent? 1. When evaluated by ROI? 2. When evaluated by EVA? nt rences Complete this question by entering your answers in the tabs below. Reg C2 Reg A1 Reg A2 Req31 Reg B2 Reg CI Calculate the ROI for both North and South divisions. (Enter your answers as a percentage rounded to 1 decimal place de 32.1).) ROI Divisions North South % % RNIA Req A2 > Seved The following data are available for two divisions of Solomons Company North Division South Division Division operating profit $ 7,175,000 $ 33,100,000 Division investment 41,000,000 331,000,000 ok The cost of capital for the company is 6 percent. Ignore taxes. Required: a-1. Calculate the ROI for both North and South divisions. a-2. If Solomons measures performance using ROI, which division had the better performance? b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) b-2. If Solomons measures performance using economic value added, which division had the better performance? c. Would your evaluation change if the company's cost of capital was 15 percent? 1. When evaluated by ROI? 2. When evaluated by EVA? int ances Complete this question by Montering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Req B2 Reg Ci Reg C2 Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) EVA Divisions North South

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