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The following data are available for two divisions of Solomons Company North Division South Division Division operating profit $ 6,355,eee $ 41,730, eee Division investment
The following data are available for two divisions of Solomons Company North Division South Division Division operating profit $ 6,355,eee $ 41,730, eee Division investment 31, eee, eee 3 21, eee, eee The cost of capital for the company is 9 percent. Ignore taxes. Required: 0-1. Calculate the ROI for both North and South divisions. 0-2. If Solomons measures performance using ROL which division had the better performance? b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities) b-2. If Solomons measures performance using economic value added, which division had the better performance? c. Would your evaluation change if the company's cost of capital was 17 percent? 1. When evaluated by ROI? 2. When evaluated by EVA? Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Reg 1 ReqB2 ReqC1 Reg 2 Calculate the ROI for both North and South divisions. (Enter your answers as a percentage rounded to 1 decimal place (ie 32.1)) ROI Divisions North South Reg A1 Reg A2 Reg 1 Reg B2 Reg Reg C2 of Solomon measures performance using ROI, which division had the better performance? North Complete this question by entering your answers in the tabs below. Reg A1 Req AZ Req B1 Reg B2 Reg C Reg C2 Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) EVA Divisions North Soum Complete this question by entering your answers in the tabs below. RAL ROGAR B1 1 RB2 RCI Rec2 If Solomons measures performance using economic value added, which division had the better performance? North South Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg 1 Req B2 Reg CI Reg C2 Would your evaluation change if the company's cost of capital was 17 percent? When evaluated by ROI? Complete this question by entering your answers in the tabs below Regal Reg A2 Req B1 ReqB2 Reg Ca Reg2 Would your evaluation change if the company's cost of capital was 17 percent? When evaluated by EVA? Ones
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