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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

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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 reinvestment rate of 50% leading to a forward EV EBIT (1 - Tc) ratio of 10. What would happen to Bank of Evil Corp.'s EV Capital ratio if they reduce their capital reinvestment rate to 0% in perpetuity

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