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Zuds DIY and More's manufacturing division of lawn-mowing and snow removal equipment, segments its business according to customer type Professional and Residential. The following divisional
Zuds DIY and More'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 FVA EN Requirement 1. Calculate each division's RI. Interpret your results First, enter the formula, and then calculate each division's RI. X RI Divisional information - X Operating Total Current Sales Income Assets Liabilities Residential S 850.000 $ 68.000 $ 200.000 $ 68 000 Professional 1.095 000 153 300 365.000 140.000 Assume that management has a 24% target rate of return for each division. Also assume thal Zuds's weighted average cost of capital is 12% and its effective tax rate is 33% Print Done
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