Question 17 (10 points) Assume Division X of the Giraffe Corporation had the following results last year (in thousands). Management's target rate of return is 12% and the weighted average cost of capital is 5%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities Required: For the Division X, calculate: 1. Profit margin percentage. 2. Asset turnover. 3. Return on investment. 4. Residual income. $6,100,000 1,100,000 3,000,000 700,000 5. Economic value added (EVA)

Assume Division X of the Giraffe Corporation had the following results last year (in thousands). Management's target rate of return is 12% and the weighted average cost of capital is 5%. Its effective tax rate is 40%. Required: For the Division X, calculate: 1. Profit margin percentage. 2. Asset turnover. 3. Return on investment. 4. Residual income. 5. Economic value added (EVA)