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problem 3 ABC Ltd has three divisions -A, B and C. The operatiang results of the three divisions are as follows: A $ Divisions B
problem 3 ABC Ltd has three divisions -A, B and C. The operatiang results of the three divisions are as follows: A $ Divisions B $ $ Sales 5,00,000 5,00,000 10,00,000 Less: Cost 4,00,000 3,00,000 600,000 Profit 1,00,000 2,00,000 4,00,000 Investment 3,00,000 5,00,000 15,00,000 (i) You are required to determine ROI of the three divisions and rank these divisions on the basis of their performance. (ii) Determine residual income (RI) of the three divisions and rank them assuming cost of capital is 15%
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