The table below shows the annual results for the four divisions of a group company. Tasks 1.

Question:

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

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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