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Accounting Assignment | Custom Assignment Help

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September 13th, 2019

A global consumer goods manufacturer has three divisions which operate in different businesses. The financial information for each division is as…6,000

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a). Calculate the return on investment for each division. Which divisions have a better and worse performance, according to the ROI measure?

b). Indicate possible reasons why the division have different costs of capital.

c). Calculate the residual income of each division. Which divisions have a better and worse performance, according to the RI measure?

d). Are the division’s rankings different between the first and third question? Why/why not?

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