Question
A firm plans to grow its invested capital by 6% next year. It says it will do that by investing only 50% of NOPAT. That
A firm plans to grow its invested capital by 6% next year. It says it will do that by investing only 50% of NOPAT. That is, the growth rate, g, is 0.06, and the the investment rate, IR, is 0.50. What ROIC must the firm earn next year in order for that to happen?
| 15% |
| 12% |
| 6% |
| 3% |
| 1.2% Also, will increase the firm's growth rate increase ROIC? |
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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9814365041, 978-9814365048
