Apa Kabar Co, an Indonesian company operating in Australia, has two (2) divisions - Empat and Lima The company is trying to assess the comparative performance of the two divisions and the staff who manage them. One of the criteria the firm employs is related to its long term weighted average cost of capital which sits at 12%. You are provided with the following information relating to each divisions trading figures. The company does not allocate the cost of long-term debt to its divisions.

Operating Income Interest on long-term debt Net Income before Tax Average Book Values Total Assets 4,400,000 450,000 1,850,000 700,000 400,000 2,150,000 10,500,000 7,750,000