PE FINC300 7.docx FINC 300 WEEK 7 ASSIGNMENT FINC 300 WEEK 7 ASSIGNMENT Exercise 1 C

PE  FINC300  7.docx  FINC 300  WEEK 7 ASSIGNMENT FINC 300  WEEK 7 ASSIGNMENT  Exercise 1 Chapter 26  Comparing division, A and division B through all of the numbers that are presented. Division B is in a better financial position than division A. Just from the very first question Division A is a sixth of the market value of division B. As we transition into question 2 and 3 where 300 is invested into division A and B by looking at the number s division B creates a 300 created value however division A creates a loss of 200 with an investment. The big difference between A and B is the return of capital employed with a 5% and a 30% this causes the big difference. Return on capital employed (ROCE) is a financial ratio that can be used in assessing a company's profitability and capital efficiency. In other words, the ratio can help to understand  how well a company is generating profits from its capital [ CITATIO