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True/false When company has significant interest-bearing noncurrent liabilities, these are viewed as a source of invested capital. ROA rises with high levels of intangible assets
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- When company has significant interest-bearing noncurrent liabilities, these are viewed as a source of invested capital.
- ROA rises with high levels of intangible assets
- There is a single widely used accepted ROIC calculation
- The classic definition of ROIC treats non-current liabilities as an investment in operations.
- ROE is increased with debts
- Long term marketable securities are not as liquid as short-term marketable securities and needs to be segregated
- ROE measures NOPAT/Equity
- including cash and cash equivalent stockpiles in current assets distorts the value of current assets required to operate the business
- The core operating business has a significantly different return profile than large cash stockpiles and intangible assets
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