The company is in need of additional funds for expansion in several areas of its business. For this purpose, the company plans to offer attractive financial information for investors to invest in. You are asked to help the company provide this information based on the following available data:

a. Calculating Return on Investment, Residual Income and Economic Value Added for each Division and analyze the result! b. Explain which division is most likely to attract investors!

Department Store Construction Manufacture Capital 3,750,000,000 5,200,000,000 7,500,000,000 Investment 1,000,000,000 1,500,000,000 3,500,000,000 Sales revenue 2,500,000,000 7,500,000,000 100,000,000,000 Profit before tax 999,000,000 1,250,000,000 45,000,000,000 Tax rate 35% 349,650,000 437,500,000 15,750,000,000 Net Profit 649,350,000 812,500,000 29,250,000,000 * It is assumed that the rate of return this year is 21% and the cost of capital is 12.5%