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:

Uplifted

Elevated due to geological processes, often referring to the rising of Earth's crust.

Asymmetric Anticline

A type of fold in geological strata characterized by one side of the fold having a steeper slope than the other, indicating differential stress or movement during formation.

Plunging Anticline

A geological fold, specifically an anticline, where the layers of rock dip downwards from the crest, appearing as if they are 'plunging' into the ground.

Horizontal Syncline

A geological fold that is concave up and has its layers oriented horizontally, often indicating a region of compression where rock layers have been bent downward.