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Zachs, Ontario Hardwace's manufacturng divison of lawn-mowing and snow removal equipment, segments its business according to customer type: Professional and Residential. The following divisional information
Zachs, Ontario Hardwace's manufacturng divison of lawn-mowing and snow removal equipment, segments its business according to customer type: Professional and Residential. The following divisional information was avallable for the past year Vew the dwationatinformation. Requirements Round al of your answers to four decimal places. 1. Colculate eoch division's ROI. 2. Calculate each division's proft margin. imterpent your resulis. 3. Calculate each division's asset tumover. Inkerpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement i. What can you conclude? Requirement 1. Calculate each division's ROI. Finst, enter the formula, and then calculate each division's ROI using tho expanded formula. (Enter your answers as a percent, rounded to four decimal places) Divisional information Assume that management has a 24% target rate of return for each division. Also, assume that Zachs's weighted average cost of capital is 16% and its effective tax rate is 32%
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