Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted)
A. only the gross book value of assets needs to be calculated.
B. the problems associated with measuring the asset base are eliminated.
C. the arguments about the implicit cost of interest are eliminated.
D. desirable investment decisions are less likely to be neglected by high-return divisions.
Answer: D
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The corporate charter is a document filed with the secretary of the state in which the firm is incorporated that provides information about the company, including its name, address, directors, and amount of capital stock.?
Answer the following statement true (T) or false (F)
If the last dividend on Markowitz Trucking stock was $2 per share and if dividends are expected to grow 10% annually, what is the share price if the required return is 12%?
A) $100 B) $155 C) $110 D) $125 E) $130
Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern), the covariance will be:
A. a large positive number. B. a large negative number. C. a positive or negative number close to zero. D. None of these choices.
_____ is the process of designing a product for efficient production at the highest level of quality
a. QFD b. DFM c. DFMEA d. DFE