student
746 Points
Joined March 2008
Stevens company has two divisions that report on a decentralizedbasis. Their results for 2004 were as follows
Helmet Ball
sales $ 150000 $300000
Income $15000 $45000
Asset base $75000 $150000
WACC 12% 12%
Require
compute the follwoing amounts for each division
ROI, Residual income if desired rate of return is 12%
EVA
Turnover if desired rate of return is 25%
Margin for each division if desired rate is 10%