Should you invest in this company solely based on the ROIC given their cost of capital is 10%. Company Data: Networking

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answerhappygod
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Should you invest in this company solely based on the ROIC given their cost of capital is 10%. Company Data: Networking

Post by answerhappygod »

Should you invest in this company solely based on the ROIC given
their cost of capital is 10%.
Company Data:
Networking Capital = $1,000
PPE = $5,000
Intangibles = $6,000
NOPAT = $1,500
Select one:
a.
Yes, ROIC > cost of capital + benchmark
b.
No, ROIC < cost of capital + benchmark
c.
No, ROIC > cost of capital
d.
Yes, ROIC > cost of capital
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