ACC Case Study – Decompose Alcoa’s ROE
1. Decompose Alcoa's ROE for the annual intervals 2006 and 2007.2. Why did the inventory value drop 6% after the corporate introduced the third quarter earnings for 2007?three. Primarily based on the information offered, what working segments comprise the majority of Alcoa's enterprise?four. Primarily based on the reconciliation of ATOI to Internet Revenue, what are you able to say in regards to the high quality of Alcoa's revenue?5. What exterior elements restrict Alcoa's flexibility in pricing merchandise offered? Which segments of Alcoa's operations do you assume are immediately impacted by the pricing limitation?6. Given the pricing limitations on their merchandise, on what foundation does Alcoa compete?7. Why may that make it troublesome to compete with rising entities in numerous world areas, corresponding to United Firm Rusal, that has entry to low-cost hydropower in Russia?