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While income has increased in fiscal 2012 is it clear that

Consider the following information for Executive Electronic

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Required:

a. Evaluate the company in terms of residual income (RI), which is equivalent to EVA since there are no adjustments for accounting distortions.

b. While income has increased in fiscal 2012, is it clear that the company's performance has improved?

c. Explain why the required rate of return increased in fiscal 2012.

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Managerial Accounting: While income has increased in fiscal 2012 is it clear that

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