Jonsons is a national paint manufacturer and retailer. The

company is segmented into five divisions: Paint Stores (branded retail

locations), Consumer (paint sold through stores such as Walmart,

Home Hardware and Rona), Automotive (sales to auto manufacturers),

International, and Administration. The following is selected divisional

information for the companys two largest divisions: Paint Stores and

Consumer (in thousands of dollars).

Division	Sales	Operating Income	Total Assets	Current Liabilities
Paint Stores	$3,920,000	$490,000	$1,400,000	$350,000
Consumer	$1,200,000	$180,000	$1,600,000	$600,000

Management is expecting a 20% target rate of return. The Companys weighted average cost of capital (WACC) is 15% and its effective tax rate is 30%.

1. Calculate each divisions Return on Investment (ROI)

2. Compute each divisions Residual Income (RI)

3. Calculate each divisions Economic Value Add (EVA)