Question 1 Benji Smore 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 Canadian Tire, Home Hardware and Rona), Automotive (sales to auto manufacturers), International, and Administration. The following is selected divisional information for the company's two largest divisions: Paint Stores and Consumer (in thousands of dollars) Division Sales Operating Income $490,000 Total Assets $1,400,00 Current Liabilities $350,000 Paint Stores $3.920,000 Consumer $1,200,000 $180,000 $1,600,00 $600,000 Management is expecting a 20% target rate of return. The Company's weighted average cost of capital (WACC) is 15% and its effective tax rate is 30%. Required: 1. Calculate each division's Return on Investment (ROI) and briefly interpret your results. Paint Stores Consumer Chapter 13 Mark: 75