Enrods cost of capital is 16%. Compare the performance of the two divisions under both ROI and

Question:

Enrod’s is 16%. Compare the performance of the two divisions under both ROI and Residual income measures. In which division should Enrod invest more capital?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...