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Hi sir, for part b of the question i added all the earnings and deducted the average of ROCE x 0.2, they haven’t mentioned that the earnings should also be average so is it fine?
Hi also what did they mean by excess earnings in that question?
riahalhani: It would not get you full marks because it is not really very logical. However you would certainly get credit for what you did (especially because the question was not well worded).
Ranganaherath: This is explained in the question. It is the excess of the earnings over the average return on capital employed of the biotech industry.