Briefly describe the following popular growth targets: (1) Accounting-based return on investment (ROI), (2) Economic value added
Question:
(1) Accounting-based return on investment (ROI),
(2) Economic value added (EVA®),
(3) Target growth rate of sales or assets. Which is most widely used, and why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 94% (18 reviews)
All three measures require information from the firms fi...View the full answer
Answered By
Ishrat Khan
Previously, I have worked as an accounting scholar at acemyhomework, and have been tutoring busines students in various subjects, mostly accounting. More specifically I'm very knowledgeable in accounting subjects for college and university level. I have done master in commerce specialising in accounting and finance as well as other business subjects.
5.00+
140+ Reviews
437+ Question Solved
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Question Posted:
Students also viewed these Corporate Finance questions
-
Economic Value Added (EVA) is similar to residual income in that income is compared to the cost of investment used to earn that income. However, there are some key differences. EVA uses: net...
-
'I know headquarters wants us to add that new product line, said Dell Havasi, manager of Billings Companys Office Products Division. But I want to see the numbers before I make any move. Our...
-
Briefly describe the following techniques for managing inventory: ABC system, economic order quantity (EOQ) model, just-in-time (JIT) system, and computerized systems for resource controlMRP, MRP II,...
-
The RRR Company has a target current ratio of 2.4. Presently, the current ratio is 3.3 based on current assets of $6,567,000. If RRR expands its inventory using short- term liabilities (maturities...
-
Why is an opinion leader a more credible source of product information than an advertisement for the same product? Are there any circumstances in which information from advertisements is likely to be...
-
What have been the results of empirical tests of the dividend theories? AppendixLO1
-
Annual median family income. The table below lists the US median annual family income every 4 years during the period 19902018. It also contains several values for each of two simple indexes for...
-
A black female employee is told that she cannot come to work with her hair in decorative braids traditionally worn in Africa, and if she continues to do so, she will be terminated. Does the employee...
-
Coca-Cola Financial statement analysis: cash, cash equivalents and receivables (Due on 03/12/20) Please carefully read the Financial Statements and accompanying notes of the Coca Cola Company for...
-
You are mapping metamorphic rocks and you notice a lineation within the rocks. At five different outcrops you measure the pitch of the lineation on an exposed planar rock surface (not necessarily the...
-
What is the financial planning process? What is a strategic plan? Describe the roles that financial managers play with regard to strategic planning.
-
In the sustainable growth model, what does the word sustainable mean? In what ways can the sustainable growth model highlight conflicts between a firms competing objectives?
-
\(27^{\circ} \mathrm{C}=\) ____________ \({ }^{\circ} \mathrm{F}\) Convert the temperatures to the nearest degree.
-
While sovling y' = Ky(Ay), we used the fact that 1 y(1) 1 1 - y y-A Use partial fraction decomposition (and a bit of algebra) to show that this is true. 1) Use partial fractions. Do not merely...
-
You are fluent in three languages. In terms of your strengths, this is an example of what? a. Personal brand b. Vocation c. Experience d. Competency
-
Miller Company's contribution format income statement for the most recent month is shown below: Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income...
-
Find f''(x). f(x) = (x+8) 5 f''(x) =
-
How does the market play into business financials? 2- How do stocks and bonds play into the future of the organization? 3- What is the future value of money and what is it used for? 4- What is a...
-
Is creative accounting illegal?
-
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
-
A single-phase step-down transformer is rated $15 \mathrm{MVA}, 66 \mathrm{kV} / 11.5 \mathrm{kV}$. With the $11.5 \mathrm{kV}$ winding short-circuited, rated current flows when the voltage applied...
-
One commentator suggested that the government should give loans for higher education, and the loans should be financed by charging recipients a lifelong flat- rate tithe on all earnings so that the...
-
The analysis surrounding Figure 7.1 assumes that public schooling is a take- it- or- leave- it option. That is, individuals are not allowed to supplement public education with private lessons. Show...
-
Officials at California University of Pennsylvania recently argued that wealthier students should pay higher tuition, and the revenue should be used to offer more scholarships to poorer students...
-
please help Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [The following information applies to the questions displayed below.] Comparative financial statements for Weaver...
-
A firm has 1000 shareholders, each of whom own $59 in shares. The firm uses $28000 to repurchase shares. What percentage of the firm did each of the remaining shareholders own before the repurchase,...
-
Vancouver Bank agrees to lend $ 180,000 to Surrey Corp. on November 1, 2020 and the company signs a six-month, 6% note maturing on May 1, 2021. Surrey Corp. follows IFRS and has a December 31 fiscal...
Study smarter with the SolutionInn App