If the Investment Rate of a Company Is 10 Percent

question 16

Multiple Choice

If the investment rate of a company is 10 percent and the ROIC is 20 percent,what is the growth rate?

• A)5 percent.
• B)50 percent.
• C)2 percent.
• D)200 percent.

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Definitions:

Return

In finance, it refers to the profit or loss made on an investment over a specified period, expressed as a percentage of the initial investment.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stockholders, calculated as total assets minus total liabilities minus preferred stock equity.

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, which includes both raw materials and finished goods.