(a)
Concept Introduction:
Return on investment represents the investment returns in regard to revenues. It is used to determine whether the investments are making loss or profit. In other words, the benefit or return from the original cost of investment is termed as return on investment.
The return on investment for the four W.D. Co. sectors using the DuPont formula.
(b)
Concept Introduction:
Rate of return on investment represents the investment performance. It is beneficial for investor to compare different investments and select best investment. The benefit or return from the original cost of investment is return on investment.
The reason for thedifference in the four sectors in terms of profit margin, investment turnover, and return on investment.
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