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Case+10-Questions - 3 Recommend compensation packages for...

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Case 10-Performance Measurement 1. Develop and recommend appropriate measures (ROI, RI, EVA)for the financial portion of the balanced scorecard for the Company’s segments, assuming each is a separate investment center (example: North America and International). Define each measure precisely. These measures should reflect the Company’s strategy as well as the fact that the segments are investment centers. Justify the measures you have recommended. 2. Using the measures you identified above, evaluate each segment’s performance over the past three years (Show your computations of the measures for the segment performance evaluations). Which segment appears to be doing a better job? Why? What qualitative factors might affect your ranking of segment’s performance?
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Unformatted text preview: 3. Recommend compensation packages for the vice presidents of each investment center, based on the above. The compensation package should reflect the Company’s strategy and goals. 4. Prepare a memo to the CEO presenting your analysis and conclusions. • For this computationally intense case, the annual report provides you with most of the needed information, however you may need to make certain assumptions regarding segment portion of revenues/costs and assets/liabilities. • Assume that equity investors require an 8% rate of return • The weighted-average shares outstanding (used to calculate earnings per share) is a good measure of the number of shares outstanding....
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