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Calculate return on investment and residual income for each segment A. Calculate the return on investment for each segment. Rank them from highest to lowest.
Calculate return on investment and residual income for each segment
A. Calculate the return on investment for each segment. Rank them from highest to lowest.
B. Assume the cost of capital is 12% for a segment. Calculate residual income for each segment. rank them from highest to lowest.
C. Repeat (B), but assume the cost of capital is 17% for a segment. rank them from highest to lowest.
D. Comment on the rankings achieved.
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