What is wrong with setting a goal in terms of roce

Reference no: EM131491068

Question: 1. A firm states that one of its goals is to earn a return on common equity of 17-20 percent. What is wrong with setting a goal in terms of return on common equity?

2. Some retail analysts use a measure called "inventory yield," calculated as gross profit-to-inventory. What does this measure tell you?

Reference no: EM131491068

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