Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment...

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Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment centers): soap products, skin lotions, and hair products. Information about the most recent year's operations follows. The information includes the value of intangible assets, including research and development, patents, and other innovations that are not included on HSC's balance sheet. Were these intangibles to be included in the financial statements (as they are for EVA), the increase in the balance sheet and the increase in after-tax operating income would be as given below: Operating Division Soap products Skin lotions Hair products Cost of capital Average Income Total Assets $3,241,000 $59,991,000 2,741,000 4,991,000 32,991,000 54,991,000 Intangibles' Value of Effect on Intangibles Income $1,491,000 $ 991,000 7,991,000 5,991,000 991,000 691,000 Minimum desired rate of return 5.00% 4.00% Required: 3. Calculate EVA for each division. (Round your answers to 2 decimal places. (i.e. .1234 12.34%)) Answer is complete but not entirely correct. Soap Products 1. Return on investment (ROI) 2. Residual income (RI) $ 5.40 241,450 % Skin Lotions 8.31 % Hair Products 3. EVA $ 839,874 $ $ 1,091,450 1,421,360 $ 9.08 2,241,450 % $ 2,791,360 Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment centers): soap products, skin lotions, and hair products. Information about the most recent year's operations follows. The information includes the value of intangible assets, including research and development, patents, and other innovations that are not included on HSC's balance sheet. Were these intangibles to be included in the financial statements (as they are for EVA), the increase in the balance sheet and the increase in after-tax operating income would be as given below: Operating Division Soap products Skin lotions Hair products Cost of capital Average Income Total Assets $3,241,000 $59,991,000 2,741,000 4,991,000 32,991,000 54,991,000 Intangibles' Value of Effect on Intangibles Income $1,491,000 $ 991,000 7,991,000 5,991,000 991,000 691,000 Minimum desired rate of return 5.00% 4.00% Required: 3. Calculate EVA for each division. (Round your answers to 2 decimal places. (i.e. .1234 12.34%)) Answer is complete but not entirely correct. Soap Products 1. Return on investment (ROI) 2. Residual income (RI) $ 5.40 241,450 % Skin Lotions 8.31 % Hair Products 3. EVA $ 839,874 $ $ 1,091,450 1,421,360 $ 9.08 2,241,450 % $ 2,791,360