5. Company Y has the following inputs: A =100, ROIC =20%, r =30%, IR =50%. a. Once purchased you believe the ROIC of company Y can be increased to 35%. What is the maximum premium (expressed as a percent of the current stock price) you would be willing to pay for this company? b. Suppose you pay 100.00 for Y and the ROIC immediately increases to 35%. What is your 1-year return? C. Redo (b) also assuming the return required by equity investors' immediately increases to 40%? 5. Company Y has the following inputs: A =100, ROIC =20%, r =30%, IR =50%. a. Once purchased you believe the ROIC of company Y can be increased to 35%. What is the maximum premium (expressed as a percent of the current stock price) you would be willing to pay for this company? b. Suppose you pay 100.00 for Y and the ROIC immediately increases to 35%. What is your 1-year return? C. Redo (b) also assuming the return required by equity investors' immediately increases to 40%