QUESTION 2: FINANCIAL PERFORMANCE Total marks for this question: 25 marks [Suggested time 45 minutes Ielum Ltd manufactures electronic devices and competes on the basis of quality and leading-edge designs. The company has $1.750,000 invested in assets in its Mobile Phone Division After-tax operating profit from sales of mobile phones this year is $325,000. The Tablet Division has $6,000,000 invested in assets and on after tax operating profit this year of $1,050,000, Income for the Mobile Phone Division has grown steadily over the past few years. The weighted average cost of capital for Telum Lid i % and the previous penod's after-tax retum on investment for each division was 13%. The CEO of Teluca Ltd has told the manager of each division that the division that performs best this year will get a bonus REQUIRED (Show all relevant workings where appropriate) 1. For each division of Talk Lidluse profit atter fax in calculating 04 m. m) Calculate the ROI (4 marks) m) Calculate the residual income (4 marks m Briefly explain which manager will get the bonus (4 mars iwlProvide one advantage and one disadvantage of each measures (4 market 2. The CEO of leli. Td has recently heard of another measure similar to residual income called EVA The CEO has the accountant calculate EVA-adjusted incomes of the Mobile Phone and Tablet Divisions, and finds that the adjusted after tax operating profits are $700,000 and $1.300,000, respectively. Also, the Moble Phone Division has $525.000 of current abilities, whereas the Tablet Division has only $105,000 of current liabilities. Using the above information Calculate EVA for each division (Note: Uwe net assets or copital employed) (4 marta Briefly discuss which divaional manager wil get the bonus (2 marca 3. What non financial measures could telum lid use to evaluate divisional performance? Suggest any three non-financial measures 13 more