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Assuming the ROIC and investment rate remains constant, what is the expected growth rate? What is the FCF for 2020 for firm A? You have

image text in transcribed Assuming the ROIC and investment rate remains constant, what is the expected growth rate? What is the FCF for 2020 for firm A?

You have assembled the following data for Company A 2020 ROIC 10% WACC 8% Investment rate (IR) 40% Invested Capital (beginning of year) $100 You expect ROIC, WACC and IR to continue at these levels indefinitely

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