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5. Stellar Computers has a well-earned reputation for earning a high return on capital. The firm had a return on capital of 100% on capital
5. Stellar Computers has a well-earned reputation for earning a high return on capital. The firm had a return on capital of 100% on capital invested of $1.5 billion last year. Assume that you have estimated the value of the research asset to be $1 billion. In addition, the R\&D expense this year is $250 million, and the amortization of the research asset is $150 million. Reestimate Stellar Computers' return on capital
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