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 If the WACC is 11 , which division has a higher residual income 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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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

Complete the table
Which division has the highest ROA?
If the WACC is 11%, which division has a higher residual income?
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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