Homework Question 2 of 2 /6 Pharoah Corporation recently announced a bonus plan to reward the manager of its most pro table division. The three divisional managers are to decide which performance measure will be used to evaluate profitability Pharoah Corporation requires a 10% minimum return on investment The following information is available for the year just ended Division Ashton Drye Poole Divisional Operating Assets 5960,000 880,000 530.000 Divisional Operating Income $111360 106.480 66.780 Invested Capital $206.000 76,000 126,000 (a) Calcutate return on investment (Round ROI to 2 decimal places, es 5.126) Return on investment Ashton X Drye % Poole Which division performed the best? 61 Calculate residual income the amount is negative then enter with a negative sin preceding the number, 23 -5,125 or parentheses e (51251) Residual Income MacBook Pro 24 009 600 F DO 90 F7 3 FS 38 es F3 F6 3 % A # 3 $ 4 & 7 5 6 8 9 0 7 mework Question 2 of 2 - 16 LE b) Calculate residual income of the amount is negative then enter with a negative sin preceding the number -5,125 or parentheses ex (5,1250) Residual income $ Ashton $ Drye Poole $ Which division performed the best? (c) Assume that Pharoah Corporation's weighted average cost of capital is 8% and its tax rate is 25%. Calculate economic value added. Of the amount is negative then enter with a negative sin preceding the number, es -5,125 or parentheses, cs. (5,1251) Economic Value Added $ Ashton $ Drye $ Poole Which division performed the best? e Textbook and Media MacBook Pro DO 80 3 DO 008 4 !! FS 86 FY F2 # A % & $ 4 3 5 6 7 8 9 O