Question 1 Lee Van corporation is a private company whose management accountant is analyzing its investment centre performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below: Current liabilities 24500 Notes payable 45600 Equity 150,000 Depreciation 24,000 Non-operating assets 26,000 Tax rate 15% Net income 35500 Research and Development S7200 Training expenses for employees S6700 Operating assets beginning SI56,200 Interest on debt 6% Risk free rate 3% Market retum 8% Beta 1.5 REQUIRED 1. Calculate interest expense, tax and EBIT 2. Calculate the total capital employedof the company. 3. Calculate weighted average cost of capital, 4. What is the EVA of the company? 5. Calculate Residual Income. 6. What are the major advantages of using EVA to evaluate performance Question 2 Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below: Current liabilities no debt included) 4500 Notes payable 25600 Equity 75,000 Personal car 15000 Tax rate 20% Faming before tax S49,500 Sales 56200 Interest on debt 8% Non-operating assets S15,000 REQUIRED 1. Calculate interest expense, tax and EBIT 2. Calculate the operating assets of the company. 3. In calculating the Plant Property and Equipment, he decides to use the gross PPE and ignore the accumulated depreciation. Can you mention one of the main reason why he decides to do so? 4. What are the profit margin and the asset turnover of the company? 5. Using Du Pont analysis, calculate the ROI of the investment centre