You are the manager of the mail-order investment center at NuTech. You report directly to the CEO, and the Compensation Committee of the board evaluates your performance and decides on your raises and bonuses. The Compensation Committee has gathered performance information for each of the divisions, including ROA (return on assets). The committee plans to divide a bonus pool among the division managers based on the ROA performance numbers. Given that the mail-order operation is only two years old and the other retail stores are, on average, 10 years old, what do you think about the committee’s plan? What other information should the board consider?

Answer rating: 100% (QA)

Book value The value of an asset calculated after charging depreciation ... View the full answer