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Operating Total Current Sales Income Assets Liabilities Residential Professional $ 450,000 $ 54,000 $ 180,000 $ 67,000 740,000 133,200 370,000 150,000 Assume that management
Operating Total Current Sales Income Assets Liabilities Residential Professional $ 450,000 $ 54,000 $ 180,000 $ 67,000 740,000 133,200 370,000 150,000 Assume that management has a 25% target rate of return for each division. Also, assume that Zolum's weighted average cost of capital is 17% and its effective tax rate is 28%. Zolum, DIY and More's manufacturing division of lawn-mowing and snow removal equipment, segments its business according to customer type: Professional and Residential. The following divisional information was available for the past year. View the divisional information Requirements 1. Calculate each division's RI. Interpret your results. 2. Calculate each division's EVA. Interpret your results. 3. Describe the conceptual and computational similarities and differences between RI and EVA. Requirement 1. Calculate each division's RI. Interpret your results. First, enter the formula, and then calculate each division's RI. RI
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