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Zims, My Hardware's manufacturing division of low-moving and snow removal equpment, segments its business according to customer type: Professional and Residential. The following divisional Information

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Zims, My Hardware's manufacturing division of low-moving and snow removal equpment, segments its business according to customer type: Professional and Residential. The following divisional Information was available for the past year (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 GOOD - X Divisional information Total Current Operating Income Sales Assets Liabilities Residential $ 1,314,400 $ 1,395,000 65,720 $ 167,400 212,000 $ 372.000 74,000 148,000 Professional Assume that management has a 25% target rate of return for each division. Also, assume that Zims's weighted average cost of capital is 13% and its effective tax rate is 35%. Print Done

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