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ROA Net income Total Assets Division A 12% 912,400 Division B 10% 132,000 Division C 160,400 1,260,000 Complete the table Which division has the highest

ROA Net income Total Assets
Division A

12%

912,400
Division B

10%

132,000
Division C

160,400

1,260,000

  1. Complete the table
  2. Which division has the highest ROA?
  3. If the WACC is 11%, which division has a higher residual income?
  4. Suppose managers are rewarded based on the ROA, Name one way in which managers can distort the reality to show a favorable picture.

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