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Professional Video Systems operates an integrated systems division (that sells professional quality video systems) and a quality components division (that sells performance-improvement components for existing systems). Some division nancial measures for 2019 are as follows: Integrated Quality Systems Components Division Division Total assets $33,000,000 $28,500,000 Current liabilities $6,600,000 $8,400,000 Operating Income $2,475,000 $2,565,000 Required rate of Return 12% 12% Required: 1. Calculate return on investment (ROI) for each division using operating income as a 2. 3. 4. 5. measure of income and total assets as a measure of investment. Calculate residual income (RI) for each division using operating income as a measure of income and total assets minus current liabilities as a measure of investment. Sean Love, the integrated systems division manager, argues that the quality components division has \"loaded up on a lot of short-term debt" to boost its RI. Calculate an alternative RI for each division that is not sensitive to the amount of short-term debt taken on by the quality components division. Comment on the result. Professional Video Systems, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $18,000,000 at an interest rate of 10% and equity capital with a market value of $12,000,000 and a cost of equity of 15%. Applying the same weighted- average cost of capital (WACC) to each division, calculate EVA for each division. Use your preceding calculations to comment on the relative performance of each division