Tibbs IncHad the Following Data for the Most Recent Year: Net

question 17

Multiple Choice

Tibbs Inc.had the following data for the most recent year: Net income = $300; Net operating profit after taxes (NOPAT) = $400; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300.What was its return on invested capital (ROIC) ?

• A) 14.91%
• B) 15.70%
• C) 16.52%
• D) 17.39%
• E) 18.26%

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Definitions:

Groupthink

A psychological phenomenon in which people strive for consensus within a group to the extent that they set aside their own personal beliefs or adopt the opinion of the rest of the group.

Impaired Decision Making

A reduction in the ability to make logical, considered decisions, potentially due to cognitive limitations, emotional factors, or neurological issues.

Harmony

a state of agreement, accord, or synchronization among components which often creates a pleasing or orderly whole.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.