medium · Principles of Finance cost-of-capital-structure
A manufacturer has an EBIT of 480 million, total debt of 1,000 million, and total equity of 1,400 million.
If the marginal tax rate is 25% and invested capital is defined as total debt plus equity, what is the firm's Return on Invested Capital (ROIC)?
- 25.7%
- 11.25%
- 20.0%
- 15.0%
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