Question
1. Compute ROIC given the following information: EBITDA=$3,000, REVENUES=$5,000, INVESTED CAPTAL=$20,000, OPERATING CASH TAX RATE=25 percent. 2. Explain why ROIC is a better analytical tool
1. Compute ROIC given the following information: EBITDA=$3,000, REVENUES=$5,000, INVESTED CAPTAL=$20,000, OPERATING CASH TAX RATE=25 percent.
2. Explain why ROIC is a better analytical tool than return on equity (ROE) and return on assets (ROA). (with example)
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
