How Will an Increase in Invested Capital (IC )In a Given

question 16

Multiple Choice

How will an increase in invested capital (IC ) in a given year affect free cash flow (FCF ) and ROIC if all other things are kept equal?

• A)It will decrease both FCF and ROIC.
• B)It will increase both FCF and ROIC.
• C)It will increase FCF but decrease ROIC.
• D)It will decrease FCF but increase ROIC.

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to growing babies while removing waste products from the baby’s blood.

Chorion

A membrane that surrounds the amnion and becomes the fetal component of the placenta.

Epigenesis

The process by which a new phenotypic form emerges through the interactions of the preceding form and its current environment.

Zygote

The earliest developmental stage of an embryo, formed when a sperm cell fertilizes an egg cell, which then begins to divide and grow.