Multiple Choice
Assuming the tax rate remains constant,what will be the effect on the value-to-EBITA ratio of doubling the following inputs: growth,ROIC,and WACC?
A) The value-to-EBITA ratio will fall,but the amount is uncertain.
B) The value-to-EBITA ratio will decrease by 50 percent.
C) The value-to-EBITA ratio will increase,but the amount is uncertain.
D) The value-to-EBITA ratio will double.
Correct Answer:
Verified
Correct Answer:
Verified
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