Question: Consider the following data which relate to the two divisions of MBR products. Division 1 Division 2 Total Assets ($) 40,000,000 20,000,000 Non-interest bearing current

 Consider the following data which relate to the two divisions of

Consider the following data which relate to the two divisions of MBR products. Division 1 Division 2 Total Assets ($) 40,000,000 20,000,000 Non-interest bearing current liabilities 2,000,000 1,000,000 Net Operating Profit After Tax (NOPAT) 5,500,000 3,000,000 Required Return 10% 10% Required: Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for MBR shareholders

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