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It is the end of the third quarter, and Nancy is evaluating the performance of two key divisions in the company. Both divisions had $50,000
It is the end of the third quarter, and Nancy is evaluating the performance of two key divisions in the company. Both divisions had $50,000 cash available for investment in the fourth quarter, so Nancy is now analyzing each division before a potential investment. company's minimum required rate of return is 10%, while its weighted average cost of capital is 7%. Its effective tax rate is 25% Calculate the current ROI, RI, and EVA for each division through the third quarter. For ROI purposes, operating assets are considered investments. (Enter ROI as a decimal, not as a percentage. Round ROI to 4 decimal places, e.g. 0.1526. Enter negative amounts with either a - sign e.g. 15,000 or in parenthesis e.g. (15,000).)
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