What are the potential reasons why TRS over short periods of time may not reflect the actual

Question:

What are the potential reasons why TRS over short periods of time may not reflect the actual performance of a company and its management?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

See More Books

Question Posted: Aug 12, 2015 02:16 AM

See More Questions

What are the potential reasons cyclical companies invest cyclically rather than countercyclically?
What are the potential dangers to organizations that encourage excessive conformity among individual employees?
What are the potential U.S. tax benefits from engaging in a 863(b) sale?
1. Consider a local department store which only sells jeans (J) and sweaters (S). Jeans cost $20 and sweaters cost $30. For each of the examples below, graph the budget constraint our consumer faces,...
Use the frequency distribution in Example 7 to find the probability of randomly selecting a user who is not 18 to 22 years old. Ages Frequency, f 18 to 22 .. 156 23 to 35 .. 312 36 to 49 .. 254 50 to...
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to 4. The firms marginal cost is constant at $10 per unit. a. Express the firms marginal...
A manufacturer operating a standard costing system has the following data for a month: Standard Actual Number of working days 25 27 Manhours per month 5,000 5,400 Output in units 500 525 Fixed...
Use the methods of descriptive statistics to summarize the data in Table 3.11. Discuss your findings. 1. Include a summary for each variable in the data set. Make comments and interpretations based...
can somone please help me. This case involves determining the best way to transport an initial 25 articulated bus order from Prague Czech where they are produced, to Santos Brazil. The units will be...
Assume you performed sampling for an accounts receivable population with a recorded population amount of $2,000,000. Tolerable misstatement is set at $100,000 for the test, and there are no...
What is the expectations treadmill and how does it affect managers ability to deliver above-average TRS over long periods of time?
What actions (good and bad) might managers take when investors have already-high expectations and managers desire to outperform peers on TRS?
Want to attend a pro-basketball finals game? The average prices for the NBA rematch of the Boston Celtics and the LA Lakers in 2010 compared to the average ticket prices in 2008 are given in the...
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob ODonnell, a local merchant, to contribute the capital to form a partnership....
One of the main purposes of evaluation research is: a. reexamining previously collected data. b. monitoring and improving programs. c. generating rich descriptions of individual perspectives. d....
10.13 Sweetlip Ltd and Warehou Ltd are two family-owned flax-producing companies in New Zealand. Sweetlip Ltd is owned by the Wood family and the Bradbury family owns Warehou Ltd. The Wood family has...
distribution that is skewed to the right instead of being normally distributed. Assume that we collect a random sample of annual incomes of 50 statistics students. Can the distribution of incomes in...
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city....
Using the example in Exercise 8.2, describe what we mean by the rejection region and the critical value. Exercise 8.2 For the past year I have spent about $4 a day for lunch, give or take a quarter...
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
Describe the two sources of detection risk that can be identified and controlled by the auditor.
(1) KFS is also interested in applying value-based management to its own divisions. Explain what value based management is. (2) What are the four value drivers? How does each of them affect value?...
What is expected return on invested capital (EROIC)? Why is the spread between EROIC and WACC so important? You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that is...
KFS has two divisions. Both have current sales of $1,000, current expected growth of 5%, and a WACC of 10%. Division A has high profitability (OP = 6%) but high capital requirements (CR = 78%)....
Which of the following examples of business-use property is NOT eligible for Section 1231 treatment when sold at a gain? * Sale of land held for three years. Net gain from a casualty gain on a dump...
Randy (48) takes a $22,000 distribution from his IRA to pay some of his daughter's $28,000 qualified education expenses at an eligible educational institution. His daughter paid $18,000 of her...
The takeover specialist chose to use the value derived from dividend discount model, while the directors prefer to use Net Realisable Value approach. Critically discuss the reasoning of each parties...

What are the potential reasons why TRS over short periods of time may not reflect the actual

Question:

Step by Step Answer:

A wellperforming company may not deliver a high TRS if the expectations include knowledge ...View the full answer

Valuation Measuring and managing the values of companies

Students also viewed these Corporate Finance questions