Multiple Choice
When a company has an ROIC greater than its cost of capital,faster growth increases value,but when it has an ROIC less than its cost of capital,what is the effect on value?
A) Faster growth creates value.
B) Faster growth destroys value.
C) Growth doesn't impact value creation.
D) None of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Companies can increase their value by shifting
Q2: For a given company,next year's NOPLAT is
Q3: A company with an ROIC of 45
Q4: When ROIC equals the cost of capital,there
Q6: Return on invested capital and revenue growth
Q7: If the growth rate of a company
Q8: Economic profit consists of the spread between
Q9: For a given company,next year's NOPLAT is
Q10: Organic growth often creates more value than
Q11: Companies can generally create more value by