Question: The table below shows the annual results for the four divisions of a group company. Tasks 1. Calculate the return on capital employed for each

The table below shows the annual results for the four divisions of a group company.

Tasks

1. Calculate the return on capital employed for each of the four divisions and rank them accordingly.2. Calculate the residual income for each of the four divisions using an interest rate of 5% and rank them accordingly.3. Comment on your findings.

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Return on Capital Employed ROCE for each division ROCE Divisional Pretax Profit Capital Employed x 1... View full answer

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