Julie Burke Inc. has two sources of funds: long term debt with a market and book value of $32 million issued at an interest rate of 10%, and equity capital that has a market value of $18 million. The cost of equity capital for Julie Burke Inc is 12%, and its tax rate is 30%. Julie Burke Inc. has three divisions, which operate autonomously. Their results for 2017 were as follows: Sales Antigua $6,000,000 St. Kitts Trinidad $4,000,000 $5,000,000 Cost of goods sold 1,500,000 2,500,000 3,700,000 Operating income 450,000 475,000 589,000 Investment base 3,000,000 2,275,000 3,100,000 Current Liabilities 500,000 1,000,000 930,000 Required: a. The company's desired rate of return is 15%. Compute each division's ROI. [2 marks] b. Compute each division's residual income. [2 marks] C. Compute the EVA using a WACC of 19% for each department. [4 marks] ROI Residual Income EVA Antigua St. Kitts Trinidad