medium · Investment Banking valuation-core

An analyst is calculating ROIC for a firm with EBIT of $200 million, a 25% tax rate, $800 million in Total Debt, $400 million in Shareholders' Equity, and $100 million in Cash.

What is the ROIC?

  1. 13.6%
  2. 18.8%
  3. 12.5%
  4. 15.0%

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