Kingsley and Alexander inc. (KAl), has two transportation… Kingsley and Alexander inc. (

Kingsley and Alexander inc. (KAl), has two transportation… Kingsley and Alexander inc. (KAl), has two transportation departments. One provides transportationservices to the public and the other provides charter services for tourists. The transportation servicesfor the public is called PTS and the other is called CTS. The following information relates to thedepartments;PTSTotal assets$2,000,000Current liabilities500,000Operating income400,000CTS$10,000,0003,000,0001,500,000Time lett2.40soncalculate the ROI for each unit [2 marks]KAI has used Residual Income as a measure of management performance, the variable itwants a manager to maximize. Using this criterion, what is the RI for each unit using the required rateis 12%. [2 marks]¡i)KAl uses two sources of funds: Long-term debt in the form of debentures with a marketvalue of $3,500,000 and interest rate of 10%, and equity with a market value of $3,500,000 at a costof equity of 14%. The tax rate is currently 30%. Using the calculated the weighted average cost otcapital (WACC) of 10.5% to calculate the EVA for each department. [4 marks) Accounting Business Managerial Accounting ACCT 6010 Share QuestionEmailCopy link