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From Corporate Finance perspective, a firm's capacity to create value is driven by three key factors, the firm's operating profitability; the firm's cost of

From Corporate Finance perspective, a firm's capacity to create value is driven by three key factors, the firm's operating profitability; the firm's cost of capital and the firm's ability to grow. Given the following information on JobaSoft Company: EBIT (2005) Invested Capital (begin. (2005) Cost of Debt 6.7% Estimated cost of Equity 12% Market value of Equity (3.9 m shares@ SHs100 a share) SHs390 million Debt SHs 110 million. 36% SHs64.5 million SHs345 million Corporate tax i) ii) iii) Calculate the company's Return On Invested Capital (ROIC). Determine the company's Weighted Average Cost of Capital (WACC). Comment on JobSoft company's value. (9 marks)

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