Whirlmore, Inc., manufactures and sells washers and dryers through three divisions: Home-Supreme, Apartment, and International. Each division is evaluated as a profit center. Data for each division for last year are as follows (numbers in thousands).

The income tax rate for Whirlmore is 30 percent. Whirlmore has two sources of financing: bonds paying 8 percent interest, which account for 20 percent of total investment, and equity accounting for the remaining 80 percent of total investment. Whirlmore has been in business for over 15 years and is considered a relatively stable stock. As a result, Whirlmore stock has a risk premium of 5 percentage points above the 6 percent long-term government bond rate. Whirlmore's total capital employed is $3 million ($2,100,000 for the Home-Supreme Division, $500,000 for the Apartment Division, and the remainder for the International Division).

Required:
1. Prepare a segmented income statement for Whirlmore for last year.
2. Calculate Whirlmore's weighted average cost of capital.
3. Calculate EVA for each division and for Whirlmore, Inc.
4. Comment on the performance of each of thedivisions.

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Home-Supreme Apartment International Salcs Cost of goods sold Selling and administrative expenses $2,700 1,770 640 $2,400 1,870 180 $1,300 1,040 100