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Which division is more profitable

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Reference no: EM132591162

Sapsora Company uses ROI to measure the performance of its operating divisions and to reward division managers. A summary of the annual reports from two divisions is shown below. The company's weighted-average cost of capital is 12 percent.

Question a. Which division is more profitable?

Question b. Would EVA more clearly show the relative contribution of the two divisions to the company as a whole? Show computations.

Reference no: EM132591162

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