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You are given the following information. 0 1 2 3 4 5 Revenue 100 120 144 173 207 249 EBIT(1-t) 60 72 86 104 124
You are given the following information.
| 0 | 1 | 2 | 3 | 4 | 5 | |
| Revenue | 100 | 120 | 144 | 173 | 207 | 249 |
| EBIT(1-t) | 60 | 72 | 86 | 104 | 124 | 149 |
The sales-to-capital ratio is 2. What is the reinvestment rate in year 5?
1) 14%
2) 12.9%
3) 19%
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Financial Freedom
Authors: Timothy Turner
1st Edition
1801573573, 978-1801573573
