User Account

All Pages

Explain the difference between roi and eva as a performance

Assignment Help Accounting Basics
Reference no: EM132802329

As a CFO, you are evaluating the performance of three divisions of your company using both measures-Return on Investment (ROI; %) and Economic Value Added (EVA; $). Note that ROI is measured by dividing net income by the total capital employed.

Problem 1: Explain the difference between ROI and EVA as a performance measure, other than their units (% vs. $). If in a given year a division has a positive ROI but a negative EVA, what would that mean? Explain also why that would happen.

Reference no: EM132802329

Questions Cloud

Why is important to understand the concepts of inflation : Why is important to understand the concepts of inflation, present value, and future value of money as Saudi Arabia moves towards Saudi Vision 2030?
What is the molecular formula : A gas sample is found to contain 39.10% carbon, 7.67% hydrogen 26.11% oxygen, 16.82% phosphorus, and 10.30% fluorine. If the motecular mass
How would you explain a diagnosis to a client : How would you explain a diagnosis to a client? Are there circumstances in which a diagnosis would not be appropriate to share with a client?
Take significant figures into consideration : What is the mass of titanium in kilograms displaces 132.9 mL of water at 25C? Make sure to take significant figures into consideration.
Explain the difference between roi and eva as a performance : Explain the difference between ROI and EVA as a performance measure, other than their units (% vs. $). If in a given year a division has a positive ROI
Explain the cross-cutting symptom measures in the dsm : There are many pros and cons in relation to mental health diagnosis. List some in supporting an argument for or against formal diagnostic protocols.
What is the molality of the dimethyl : A solution is made using 90.1 g of dimethyl ether (MM = 46.07 g/mol) and 110.0 g of methanol (MM = 32.04 g/mol). What is the molality of the dimethyl
What is rosnan economic value added : What is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations.
Calculate the molar concentration : 1. Determine the concentration as a percentage by volume if a 600. mL bottle of vinegar contains 30.0 mL of acetic acid.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd