Question

Top management of the Gates Corporation is trying to construct a performance evaluation system to use to evaluate each of its three divisions. This past year’s financial data are as follows:


Required
a. How would the divisions be ranked (from best to worst performance) if the evaluation were based on net income?
b. How would the divisions be ranked (from best to worst performance) if the evaluation were based on ROI?
c. How would the divisions be ranked (from best to worst performance) if the evaluation were based on residualincome?


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  • CreatedSeptember 23, 2013
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