Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1/5 1 point Imagine it is currently the first day of 2019. The corporate tax rate is 40% and the WACC is estimated to

image text in transcribed
Question 1/5 1 point Imagine it is currently the first day of 2019. The corporate tax rate is 40% and the WACC is estimated to be 13% pa. Suppose also that there is no surplus cash in any year and that Terminal Value (TV) at the end of 2022 is estimated to be 4 times the 2022 EBIT. All amounts are given in thousands of dollars ($k) as at the last day of each year. The following forecast has been made for Zilla Ltd: Amounts in thousands 2018 of dollars ($) (past) Shareholders' Equity 300 Debt 200 EBIT 120 2019 2020 2021 2022 312 324 337 350 204 208 212 208 128 137 147 157 Question: Calculate the Return On Invested Capital (ROIC) for 2022. Enter your answer as a percentage and round your answer to two decimal places. For example, an answer of 0.14356 or 14.356% should be entered as 14.36. Note: The calculations in this question will be used in the proceeding questions in this quiz. Therefore, save those calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions