Zeldas, Ontario Hardware's manufacturing division of lawn-mowing and snow removal equipment, segments its business according to customer type: Professional and Residential. The following divisional information was available for the past year: B (Click the icon to view the divisional information.) Requirements 1. Calculate each division's RI. Interpret your results. 2. Calculate each division's EVA. Interpret your results. 3. Describe the conceptual and computational similarities and differences between RI and EVA. .... Prof. 153300 365000 26 %) = 58400 - X Interpret your results. Divisional information Both divisions are exceeding management's expectations. Total Current Requirement 2. Calculate each division's EVA. Interpret your results. First, enter the formula, and then calculate each division's EVA. Sales Assets Liabilities Operating Income 68,000 $ 153,300 68,000 EVA Residential ....... $ Professional 850,000 $ 1,095,000 200,000 $ 365,000 140,000 Res. 1x 1 = -IC -IC Prof. % 1 = Assume that management has a 26% target rate of return for each division. Also, assume that Zeldas's weighted average cost of capital is 14% and its effective tax rate is 33%. Interpret your results exceeding the stakeholders' expectations. Print Done Requirement 3. Describe the conceptual and computational similarities and differences between RI and EVA. equations calculate whether any income was created by the division above and beyond expectations. V looks at income through the eyes of management, while V looks at it through the eyes of the shareholders and long-term creditors. Let's study the two equations by comparing the elements of their computations. Type of RI Operating income EVA Asset amount Rate of return Choose from any list or enter any number in the input fields and then continue to the next question. Time Remaining: 01:17:14 Next . ENG 18C Mostly cloudy C 8:42 PM 8/16/2021 Zeldas, Ontario Hardware's manufacturing division of lawn-mowing and snow removal equipment, segments its business according to customer type: Professional and Residential. The following divisional information was available for the past year: B (Click the icon to view the divisional information.) Requirements 1. Calculate each division's RI. Interpret your results. 2. Calculate each division's EVA. Interpret your results. 3. Describe the conceptual and computational similarities and differences between RI and EVA. .... Prof. 153300 365000 26 %) = 58400 - X Interpret your results. Divisional information Both divisions are exceeding management's expectations. Total Current Requirement 2. Calculate each division's EVA. Interpret your results. First, enter the formula, and then calculate each division's EVA. Sales Assets Liabilities Operating Income 68,000 $ 153,300 68,000 EVA Residential ....... $ Professional 850,000 $ 1,095,000 200,000 $ 365,000 140,000 Res. 1x 1 = -IC -IC Prof. % 1 = Assume that management has a 26% target rate of return for each division. Also, assume that Zeldas's weighted average cost of capital is 14% and its effective tax rate is 33%. Interpret your results exceeding the stakeholders' expectations. Print Done Requirement 3. Describe the conceptual and computational similarities and differences between RI and EVA. equations calculate whether any income was created by the division above and beyond expectations. V looks at income through the eyes of management, while V looks at it through the eyes of the shareholders and long-term creditors. Let's study the two equations by comparing the elements of their computations. Type of RI Operating income EVA Asset amount Rate of return Choose from any list or enter any number in the input fields and then continue to the next question. Time Remaining: 01:17:14 Next . ENG 18C Mostly cloudy C 8:42 PM 8/16/2021