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Bank of Evil Corp. currently have a return on capital (ROC) equal to 6%, a weighted-average cost of capital (WACC) equal to 8% and a

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Bank of Evil Corp. currently have a return on capital (ROC) equal to 6%, a weighted-average cost of capital (WACC) equal to 8% and a capital EV reinvestment rate of 50% leading to a forward ratio EBIT (1-TC) EV of 10. What would happen to Bank of Evil Corps ratio if Capital they reduce their capital reinvestment rate to 0% in perpetuity? 1.00 O 1.33 0.75 2.50

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