HOMEWORK_ Evan Hansen Corp. is a Theater company. Evan Hansen strongly believes in evaluating the performance of its standalone divisions using financial metrics such as ROI and residual income. For the year ended December 31, 2013, Evan Hanson's CFO received the following information about the performance of the property/casualty division: Sales revenues $2,000,000 Operating income 450,000 Total assets 4,250,000 Current liabilities 900,000 Debt (interest rate: 7%) 2,250,000 Common equity 1,100,000 For the purposes of divisional performance evaluation, Evan Hanson defines investment as total assets and income as operating income (that is, income before interest and taxes). The firm pays a flat rate of 20% in taxes on its income. a. What was the division's ROI for the year? b. Based on Evan Hansen's required rate of return of 10%, what was the property/casualty division's residual income for 2013? c. Hamilton's CFO has heard about EVA and is curious about whether it might be a better measure to use for evaluating division managers. The company's cost of equity capital is 15%. Calculate each of the following components of EVA for the property/casualty division, as well as the final EVA figure: 1. Net operating profit after taxes 2. Weighted average cost of capital 3. Investment, as measured for EVA calculations