a. Calculate the divisional margin for the year. b. Calculate the Du Pont ROI, and evaluate the
Question:
b. Calculate the Du Pont ROI, and evaluate the performance of Paffer Resources in relation to the expected performance.
c. Calculate the residual income.
d. Calculate the EVA.
e. Why are the residual income and EVA different?
f. Discuss the appropriateness of the use of ROI, RI and EVA as performance measures.
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a b c d Sales Variable Costs Fixed Costs Divisional Margin ROI ProfitInvestment 180000010000000 18 1...View the full answer
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Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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