Week 6 - Assignment: Solve Performance Measurement Scenarios Instructions For this assignment, employ Microsoft Excel to solve the following problems. 1. The following data is available for Cara Corp. for 2014: Sales $2,000,000 Average invested capital $500,000 Net income $300,000 Required rate of return 18% What is the return on investment at Cara Corp.? What is the residual income for Cara Corp.? 2. Select Co. had the following 2014 financial statement relationships: Asset turnover 5 Profit margin on sales 0.02 What was Select’s 2014 percentage return on assets? 3. The Dawson Corporation projects the following for the year 2014: Earnings before interest and taxes $35 million Interest expense $5 million Preferred stock dividends $4 million Common stock dividend payout ratio 30% Common shares outstanding $2 million Effective corporate income tax rate 40% What is the expected common stock dividend per share for Dawson Corp. for 2014? If Dawson's Corporation's common stock is expected to trade at a price/earnings ratio of eight, the market price per share would be what? Write a memo to a prospective investor explaining the pros and cons related to investing in this company