both Norway and Canada. Since its inception, the company has maintained a decentralized organizational structure. The following information is available for the year just ended:

Canadian Division (in Canadian dollars)

Operating income $2,400,000.00 Total assets $16,000,000.00

Norwegian Division (in Norwegian Kroner) 15,600,000.00 102,900,000.00

At the end of the prior year, when Fronmar Company invested in the Norwegian division, the exchange rate was 10 Norwegian kroner (NOK) = $1 Canadian. During the year, the Norwegian kroner declined in value. At the end of the current year, the exchange rate was 11 NOK = $1 Canadian, whereas the average exchange rate during the year was 10.5 NOK = $1 Canadian.

Required:

(A)What is the Canadian division's ROI for last year, based on Canadian dollars?

(B) What is the Norwegian division's ROI for last year, based on the Norwegian kroner? (C)Which division had the stronger financial performance? Explain your answer, along

with supporting calculations.