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Page view A Dead 8. With respect to goodwill and acquired intangibles, which of the following is most accurate concerning their treatment in computing ROIC

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Page view A Dead 8. With respect to goodwill and acquired intangibles, which of the following is most accurate concerning their treatment in computing ROIC when measuring the competitiveness of the underlying business of a company? a. Remove goodwill but not acquired intangibles from the computation. b. Remove acquired intangibles but not goodwill from the computation. c. Do not remove either goodwill or acquired intangibles from the computation. d. Remove both goodwill and acquired intangibles from the computation. Answer: 9. Nonconsolidated subsidiaries and equity investments should be measured and valued separately from invested capital. a. True b. False Answer: 10. The company's ability to meet short-term obligations is measured with ratios that incorporate three measures of earnings. Which of the following is NOT one of those measures of earnings? a. Earnings before interest, taxes, and amortization (EBITA). b. Earnings before interest, taxes, depreciation, and amortization (EBITDA). c. Earnings before interest, taxes, amortization, and preferred dividends (EBITAD). d. Earnings before interest, taxes, depreciation, amortization, and rental expense (EBITDAR)

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