A Firm Has EBIT of $24 Million and Has a Corporate

question 24

Multiple Choice

A firm has EBIT of $24 million and has a corporate tax rate of 25%.The firm has total debt of $40 million,and excess cash of $8 million.If the firm's book value of equity is $72 million,what is the firm's return on invested capital (ROIC) ?

• A)6%
• B)17%
• C)16%
• D)15%
• E)23%

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Definitions:

Communication

The exchange of information or messages between individuals through various channels and mediums.

Inspirational Workplace

An inspirational workplace is one that motivates individuals to achieve their best and fosters positive attitudes and creativity.

Conflicts

Situations where interests, needs, goals, or values of involved parties interfere with one another.

Subordinates

Individuals who work under the supervision of someone else in an organizational hierarchy.