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CoursHeroTranscribedText: Global Event Group has two major divisions: print and lntemet. Summary nancial data (in millions) for 2019 and 2020 are as follows: a (Click the icon to view the data.) 0 (Click the icon to view the division managers' annual bonus information.) 0 (Click the icon to view the investment proposal information) Read the Muirements. Requirement 1. Use the DuPont method of protability analysis to explain differences in 2020 Role between the two divisions. Use 2020 total assets as the investment base. Calculate the ROI for both divisions in 2020. (Round all ratios to three decimal places, X.XXX.) Print Internet ROI 0 Data Table C 2020 2019 2020 Print $ 18,000 $ 18,480 $ 22,500 Internet 26,000 11,150 13,000 0 More Info The two division managers' annual bonuses are based on division ROI (dened as operating income divided by total assets). If a division reports an increase in ROI from the previous year, its management is automatically eligible for a bonus; however, the management of a division reporting a decline in ROI has to present an explanation to the Global Event Group board and is unlikely to get any bonus. o More Info - X Cami Mays, manager of the print division, is considering a proposal to invest $775 million in a new computerized news reporting and printing system. It is estimated that the new system's sfate-of-the-art graphics and ability to quickly incorporate late-breaking news into papers will increase 2021 division operating income by $157 million. Global Event Group uses a 16% required rate of return on investment for each division. 1. Use the DuPont method of profitability analysis to explain differences in 2020 ROIs between the two divisions. Use 2020 total assets as the investment base. 2. Why might Mays be less than enthusiastic about accepting the investment proposal for the new system, despite her belief in the benefits of the new technology? 3. Evan Tomlinson, CEO of Global Event Group, is considering a proposal to base division executive compensation on division RI. a. Compute the 2020 RI of each division. b. Would adoption of an RI measure reduce Mays' reluctance to adopt the investment proposal for the new computerized system? 4. Tomlinson is concerned that the focus on annual ROI could have an adverse long-run effect on Global Event Group's customers. What other measurements, if any, do you recommend that Tomlinson use? Explain briefly

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