The revenues are given below. Operating margin is at 23%, tax rate at 24% and sales-to-capital of 1.6. Find the reinvest
Posted: Wed Mar 30, 2022 3:49 pm
Question 3 5 p Building on the previous question. In steady state, it is assumed that the revenues will grow at 2 percent/year. Operating margin and taxes will remain at the current rates. If the WACC=ROIC in steady state is assumed to be 8 percent, what is the reinvestment rate in the terminal year? O 0.25 0.20 0.02 O 0.025
The revenues are given below. Operating margin is at 23%, tax rate at 24% and sales-to-capital of 1.6. Find the reinvestment rate in year 4. 0 1 2 3 4 76,559 68,903 79.239 91,124 104,793 O 66.1 O 0.16 0.467 O 12.1