Calculation of economic value added

Assignment Help Business Management

Reference no: EM13971251

Why would the calculation of economic value added (EVA) alleviate the shortcoming of the return on investment measurement?

a. Because it is required by generally accepted accounting principles.

b. Because it is required for Securities and Exchange Commission reporting.

c. Because it assures compliance with Internal Revenue Service Code requirements.

d. Because managers many not accept good investment opportunities if the ROI of the investment is lower than the present ROI of the division.

Reference no: EM13971251

Questions Cloud

Calculate the net present worth of the tax savings : Using the recovery periods listed below, calculate the net present worth of the tax savings associated with both schemes. Your CEO expects a 15% return on all investments.

How far along the track does the glider travel : An air-track glider(m = 0.4 kg) is pushed against a Hooke^'s-Law spring (k = 150 N/m), compressing the spring by 10 cm. The glider is then released and the glider coasts upward along the slanted track. How far along the track does the glider trave..

Which is the better cost driver for the costs of a hospital : Which is the better cost driver for the costs of a hospital's financial services department: patient services department revenues or number of bills generated? Explain your rationale.

Advise gonzo of any duties that he may have breached : Advise Gonzo of any duties that he may have breached as a director of U R Saved and of any civil or criminal penalties that may result

Calculation of economic value added : Why would the calculation of economic value added (EVA) alleviate the shortcoming of the return on investment measurement?

Shares of sirius satellite radio : You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $4.18 and $4.15, respectively. You place a market buy order for 590 shares that executes at these quoted prices. How much money did it cost to buy th..

Salem corporation uses the calendar year as its financial : Salem Corporation uses the calendar year as its financial and tax annual accounting period. Management, because of the seasonality of sales, wants to change to a fiscal year beginning April 1st through March 31st.

Annual income is necessary to maintain the purchasing power : If the rate of inflation is 3 percent, goods and services cost that $100 will cost how much at their retirement? How much annual income is necessary to maintain the purchasing power of their $100,000 current income?

Calculate the ebit-tax and net income : Write the answers to the following questions in Word or Excel format, including your calculation and the results. Use the Attach File function below.

User Account

All Pages