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Computation of Earnings per share at the given net income

Wollen Inc., evaluates its divisions as investment centres. The sales, income, and assets of its three divisions follow. Calculate return on investment for each division. Which division is best?

PARTICULARS	DIVISION A	DIVISION B	DIVISION C
Sales	$800,000	$800,000	$800,000
Profit	$100,000	$157,000	$200,000
Assets	$600,000	$7,900,000	$4,000,000

Calculate the return on investment using the Du Pont method. What is revealed?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9162617

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