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Problem 18.35 BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections: Canada
Problem 18.35 BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections: Canada Invested capital (total assets) Net operating income Required rate of return Weighted average cost of capital Current liabilities Germany $349,000 $80,270 10% $1,999,000 $811,594 10% 9% $49,300 $288,100 9% $7,300 $54,600 After-tax income Calculate each division's ROI. (Round answers to 2 decimal places, e.g. 15.24%.) ROI Germany % Canada % Calculate each division's residual income. Residual income Germany $ Canada $ Calculate each division's EVA. EVA Germany $ Canada $
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