For a Given Company,the Return on Invested Capital (ROIC )Is

question 12

Multiple Choice

For a given company,the return on invested capital (ROIC ) is 13.5 percent,the tax rate is 34 percent,and the pretax cost of debt is 8.8 percent.If its debt-to-equity ratio is equal to 2.0,what is the return on equity (ROE) ?

• A)16.30 percent.
• B)17.80 percent.
• C)28.88 percent.
• D)25.30 percent.

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Definitions:

Reciprocity

A social principle that involves exchanging things with others for mutual benefit, particularly in the context of social relationships.

Persuasive Communication

A method of communication aimed at influencing or changing the attitudes, beliefs, or behaviors of others through the use of argument, reasoning, or appeal.

Fear Appeal

A type of persuasive communication that influences behavior on the basis of arousing fear instead of rational analysis of the issues.

Rational Analysis

A systematic, logical evaluation of information or concepts to form a judgment or conclusion.