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While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the
While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26\%), minimum rate of return (10\%), and WACC (8\%) to determine their respective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the three divisions in the company. (a) Your answer is partially correct. 15.25%, profit margin to 1 decimal place, e.g. 15.2% and asset turnover to 4 decimal places, e.g. 15.2516.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Sales } & \multicolumn{4}{|c|}{ Industrial } & \multicolumn{3}{|c|}{ Technology } & \multicolumn{3}{|c|}{ Service } \\ \hline & & $125,000 & & & $ & 376000 & & $ & 111000 & M \\ \hline Operating income & & $9,000 & & & & $19,200 & & $ & 21000 & N \\ \hline After-tax operating income & $ & 6660 & & A & $ & 14208 & & & $15,540 & \\ \hline Operating assets & & $80,000 & & & $ & 142080 & 1 & $ & 45400 & 0 \\ \hline Total assets & & $100,000 & & & & $188,000 & & $ & 106000 & P \\ \hline Current liabilities & & $5,000 & & & $ & 46000 & & & $9,000 & \\ \hline ROI & & 11 & % & B & & 10% & & & 48.44 & %c \\ \hline Residual income & $ & 1000 & & c & $ & 0 & & & $11,000 & \\ \hline EVA & $ & -940 & & D & & $2,848 & & & $7,780 & \\ \hline Profit margin & & 7 & % & E & & 3.78 & % & & 14.0% & \\ \hline Asset turnover & & 1.56 & & F & & 2 & & & 1.05 & R \\ \hline \end{tabular} suppo
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