Global Resources is a division of an international conglomerate. The following information relates to its performance. Required

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Global Resources is a division of an international conglomerate. The following information relates to its performance.


Required
a. Calculate the divisional margin for the year.
b. Calculate the Du Pont ROI, and evaluate the performance of Global 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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Accounting Business Reporting For Decision Making

ISBN: 9780730363415

6th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

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