Deriving FCF from ROCE and COC

CFA Level II FRA
#1

The difference between ROCE and COC is FCF.
For example, if ROCE is 30% and COC is 10%, then FCF is 20%
Please explain this.

#2

You’re trying to subtract apples from oranges, Satyaki.

Here’s why: ROCE and COC are expressed in percentages. FCF is a dollar amount. Therefore, of course, ROCE - COC ≠ FCF.

Hope this is helpful.