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Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows Revente Current assets Capital assets Current
Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows Revente Current assets Capital assets Current liabilities Net operating income After-tax income Weighted average cost of capital Sport $1,700,000 230.000 870,000 100,000 230,000 184000 10% Tann $800,000 40.000 660,000 100,000 40,000 32,000 10% City $6.000.000 410,000 1,590,000 500.000 600,000 480.000 10% Required For each division compute (to two decimal) the 1 Return on sales in % 2 Return on investment to two decimal) based on total assets employed in 3 Economic value added 4 Residual income based on net operating income
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