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(20 points) 4. Santeria is a transportation company. Santeria's operating margin dropped over the last five years from 40% to 35% and is projected to

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(20 points) 4. Santeria is a transportation company. Santeria's operating margin dropped over the last five years from 40% to 35% and is projected to decline. Santeria has been making significant capital investments in its transportation assets. Given this information, what do you think will happen to Santeria's ROC in the next few years? Hint: ROC = EBIT* (1-T)/(Long term debt + Equity)

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