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Zeldas, Hampton Hardware's manufacturing division of lawn-mowing and snow removal equipment, segments its businoss according to customer type: Professional and Residential. The Sollowing divisional information
Zeldas, Hampton Hardware's manufacturing division of lawn-mowing and snow removal equipment, segments its businoss according to customer type: Professional and Residential. The Sollowing divisional information was avalable for the past year: (Click the icon to view the divisional information.) Requirements 1. Calculate each division's RL. interpret your tosuitis. 2. Calculate each division's EVA. Interpret your resuls. 3. Describe the conceptual and computational similarities and differences between RI and EVA. Requirement 1. Caloulate each division's Ri. Interpret your results. First, enter the formula, and then calculate each division's R1. manufacturing division of lawn-mowing and snow removal equipment, segments its business accord ailable for the past year: the divisional information.) 2I. Interpret your results. EVA. Interpret your results. Divisional information Assume that management has a 23% target rate of return for each division. Also, assume that Zeldas's weighted average cost of capital is 16% and its effective tax rate is 28%
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