The Return on Invested Capital (ROIC)differs from the Return on Assets

question 116

True/False

The return on invested capital (ROIC)differs from the return on assets (ROA).First,ROIC is based on total invested capital rather than total assets.Second,the numerator of the ROIC is after-tax operating income rather than net income.

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Definitions:

Unpaid Principal

The portion of a loan amount that remains to be paid off by the borrower, excluding any interest or other charges.

Property Taxes

Taxes assessed on real estate by the local government, based on the property's value.

Percent Increase

The percentage by which a quantity grows over a specific period of time.

Mortgage

A loan used to purchase a property, secured by the real estate itself, typically paid back over a long term with interest.