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help with EVA please Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment centers): soap products, skin lotions,

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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: Division Soap products Skin lotions Hair products Minimum desired rate of return Cost of capital Operating Average Value of Income Total Assets Intangibles $3,250,000 $60,000,000 $1,500,000 2,750,000 33,000,000 8,000,000 5,000,000 55,000,000 1,000,000 5.000 4.005 Intangibles Effect on Income $ 1,000,000 6,000,000 700,000 Required 1. Calculate the return on investment (ROI) for each division. (Round your answers to 2 decimal places. (.e. 1234 - 12.34%)) 2. Calculate the residual income (RI) for each division. 3. Calculate EVA for each division. 1. Return on investment (ROI) Residual income (RI) EVA 2. Answer is complete but not entirely correct. Soap Products Skin Lotions Hair Products 5.42 % 8.33% 9.09 % $ 250,000 $ 1,100,000 $ 2,250,000 IS 850,000 $ 1,430,000 $ $ 2,800,000 3

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