Your last submission is used for your score. MY NOTES ASK YOUR TEACHER | PRACTICE ANOTHER 1. [-/3 Points) DETAILS - Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisons. Division A Divison B Investment operating assets) $200.000 $400,000 Profit $16,000 $52,000 The required rate of return (cast of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROT for A - (il your answer is 0.5%, enter 0.5 without the percent sign) ROT for B- b) Compute the residual income (RI) for each division. RI for A = $ RI for us 2. [-14 Points! DETAILS MY NOTES | ASK YOUR TEACHER Question 2: DuPont method In year 2016, Apple Inc. had profit margin of 27.8% (1.c., It generated 27.8 cents of prorit per dollar of sales) and asset turnover of 0.670 (I..., It generated 67.0 cents of annual sales per dollar of assets). a) The profit margin indicates that Apple has low pricing power .. it cannot charge high prices relative to costs high pricing power. It can charge high prices relative to casts high production cffidency -- It has very low costs The asset turnover Indicates that Apple is extremely efficient in generating assets per dollar of sales relatively inefficient in generating sales per dollar of assets extremely efficient in generating sales per dollar of assets b) Compute Apple's return on investment (ROI) ROI - (if your answer is 15.3%, enter 15.3 without the percent sign; rowd your answer to one cligt alter the decimal pointe, enter 15.3 no 15 or 15.332) 5) Huawei Technologies is a major manufacturer of low-cost Android phones. Think about Apple vs Huawei Which company likely has higher profit margin? - Apple Huawei Which company likely has higher asset turnover? Apple Huawei 3. [-/3 Points) DETAILS ) MY NOTES || ASK YOUR TEACHER PRACTICE ANOTHER Question 3: Economic value-added (EVA) Net operating profit before taxes is $2,000. Total assets invested capital) are $11,500, and current liabilities are $1,000. The weighted average cost of capital (WAOC) is 12%. The tax rate is 30% Compute the economic value added (EVA). NOPAT = 5 EVA = $ (if you get a negative number, enter it with a munus signi, C., -200 not ($200))