What are the issues to consider in calculating the roi

Assignment Help Financial Accounting
Reference no: EM13875746

Return on Investment (ROI) for Innovative Companies A survey by BusinessWeek and the Boston Consulting Group identified the world's 25 most innovative companies, looking at three dimensions of innovation: process innovation, product innovation, and business model innovation. The top-five companies were Apple, Google, 3M, Toyota, and Microsoft. The top-25 companies were great per- formers over the 10-year period 1995-2005. The 25 companies had an average return on sales of 3.4 percent in comparison to 0.40 percent for the Standard & Poor's 1200 Global Stock Index. The top 25 stock returns, based on increase in stock price and dividends over this 10-year period, averaged a 14.3 percent annual return, in contrast to the 11.1 percent return for the S&P Global 1200. These companies are surpassing the Global 1200 companies in part because of superior innovation.

Required: What are the issues to consider in calculating the return on investment (ROI), residual income (RI), and EVA® for a highly innovative company?

Reference no: EM13875746

Questions Cloud

Sociological dimensions of disaster : I would like to ask the following 2 questions.  These are only discussion posts so only a few lines needed for each. 1. How could Systems Theory explain the dysfunction, reaction, or response to the 2011 Earthquake in Japan?  Please justify your resp..
The continuation of this arrangement : You are a midlevel manager for the government of a small African nation that relies heavily on oil revenues to run the country's budget.
Cranberry juice might help prevent urinary tract infections : Have you heard that drinking cranberry juice might help prevent urinary tract infections (UTIs)? UTIs can occur in both genders but are more common in females due to the shorter length of the urethra. Is this a medical myth, old wives' tale, or does ..
Humans have more primitive hands than chimpanzees : Read the Science article entitled, "Humans have more primitive hands than chimpanzees" foundhere. Next provide a brief summary of the article and discuss whether or not you think humans have more primitive or advanced hands than chimpanzees. Justify ..
What are the issues to consider in calculating the roi : What are the issues to consider in calculating the return on investment (ROI), residual income (RI), and EVA® for a highly innovative company?
Stage in a typical dispute settlement process at wto : Fair trade and free trade must combine to present ‘globalization with a human face.' Discuss this statement with reference to the special and differential clause in WTO agreements.
Determine the concepts for investments : Determine the concepts for investments and the related accounting transactions
What are the difference between darwin''s : What are the difference between Darwin's and Lamarck's theories on evolution?
Determine the roc for each customer and interpret the result : Return on customer (ROC) can be measured as the increase in customer value plus the current year profit on the customer. Determine the ROC for each customer and interpret the results for these two customers.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the cost of goods sold

The following information is available for the first month of operations of Url Inc., a manufacturer of art and craft items.

  Different classifications of assets to total assets

Discuss the relative importance of different classifications of assets to total assets. What additional information would you expect to find in the notes to the financial statements about major classification of assets?

  Prepare a tabular analysis of the transactions

Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Owner's Capital, Owner's Drawings, Revenues, and Expenses.

  Prepare summary journal entries for 2013 and 2014

Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system.

  Illustrate what do you think will be the impact on fraudster

Illustrate what do you think will be the impact on the fraudster once this becomes known? How do you distinguish a revenue fraud from legal earnings management?

  Calculate the firms monthly operating income

Calculate the firm's overall contribution margin ratio, calculate the firm's monthly break-even point in sales dollars and calculate the firm's monthly operating income.

  Prepare march income statement for lae manufacturing company

Prepare the March income statement for LAE Manufacturing Company and determine the inventory balances at the end of the first month of operations.

  What is the cost of the asset being depreciated

What is the cost of the asset being depreciated? What amount, if any, was used in the depreciation calculations for the salvage value of this asset?

  Historical-cost constant rupee model

Conventional original transactions cost model and historical-cost constant rupee model

  Cost of common equity and waccpatton paints corporation has

cost of common equity and waccpatton paints corporation has a target capital structure of 40 debt and 60 common equity

  Only variable costs and fixed costs

Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $1,000,000 and the cost per unit manufactured totaled $19. On the basis of..

  Show journal entries would be recorded by sandy company

What could be the income before income taxes derived by Haden from the lease and show journal entries would be recorded by Sandy Company for all of 2004

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!

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