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Oriole Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance

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Oriole Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Oriole Corporation requires a 10% minimum return on investment. The following information is available for the year just ended. Division Ashton Drye Poole Divisional Operating Assets $950,000 870,000 525,000 Divisional Operating Income $109.250 104,400 68.250 Invested Capital $205,000 75,000 125,000 (a) Calculate return on investment. (Round ROI to 2 decimal places, e.g. 5.12%) Return on Investment %6 Ashton 96 Drye % Poole Which division performed the best? (b) Calculate residual income. (if the amount is negative then enter with a negative sign preceding the numberes.-5.125 or parentheses, e.. (5,125)) Residual Income 5 Ashton $ Drye $ Poole Which division performed the best? (c) Assume that Oriole Corporation's weighted average cost of capital is 6% and its tax rate is 22%6. Calculate economic value added. the amount is negative then enter with a negative sign preceding the number 3.125 or parentheses, e.g. (5.125).) Poole 525,000 68,250 125,000 (a) Calculate return on investment. (Round ROI to 2 decimal places, e.g. 5.12%.) Return on Investment Ashton % Drye Poole % Which division performed the best? (b) Calculate residual income. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parentheses, c.9. (5.125).) Residual Income Ashton Drye $ Poole $ Which division performed the best? (c) Assume that Oriole Corporation's weighted average cost of capital is 6% and its tax rate is 22% Calculate economic value added. (If the amount is negative then enter with a negative sign preceding the number, c.8. -5,125 or parentheses, e.s. (5.125).) Economic Value Added $ Ashton $ Drye $ Poole Which division performed the best

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