Analyze the pros and cons of using various measures

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Analyze the pros and cons of using various measures of income, investment, and assetsas inputs to the calculation of ROI and RI, such as:oOperating income vs. net incomeoTotal assets vs. employed assets vs. assets funded by long-term sourcesoCurrent cost vs. historical costoGross vs. net asset valueDiscuss the DuPont method of profitability analysis and calculate ROI based on theindividual components (i.e. return on sales and investment turnover)Suggest ways in which ROI can be improvedDescribe the benefits that using residual income as a performance measure has overusing ROIIdentify concerns regarding performance measurement of business units ofmultinational firmsExplain how moral hazard problems can be mitigated by changing the compensationschemeTerms to know:oCurrent costoDuPont method of productivity analysisoEconomic value addedoInflationoMoral hazardoResidual incomeoReturn on investmentoReturn on salesoVesting

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Term
Fall
Professor
Guymon

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