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need calculations notes. The A to Z Corporation has three divisions with a cost of capital of 6% for the company as a whole. The
need calculations notes.
The A to Z Corporation has three divisions with a cost of capital of 6% for the company as a whole. The QUESTION 6 (10 MARKS, 18 MINUTES) following relates to the 2019 financial year: Divisions in the same company Bam Nam Sam Revenues (N$) 600 000 500 000 (V)? Income/Profit (N$) 60 000 (ii)? 60 000 Investment (N$) 0? (iv)? 1 200 000 Income as a % of revenue ? 15 25 4 6 ROI (%) (vi)? Management has decentralized the entity in the last few years and would like to evaluate each divisional manager's performance based on how their divisions did. REQUIRED: MARKS 6.1 What is decentralization, how is it executed and what are its benefits? 2 6.2 Calculate the items labelled 0 to (vi) in the table above. 6 6.3 What is ROI and how can it be used? Based on it, which of these divisions is 2 performing best? TOTAL MARKS FOR QUESTION 6 10Step by Step Solution
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