Question

If the growth (g) of a company is 2% and the ROIC is 10%, what is...

If the growth (g) of a company is 2% and the ROIC is 10%, what is the investment rate (IR)?


Enter your answer rounded to the nearest whole number, i.e. fifty percent would be entered as 50, not 0.50. DO NOT include a percentage sign in your answer.

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Answer #1

We know:

ROIC = g / IR

IR=g/ROIC

g=2%

ROIC=10%

IR=2%/10%= 20%

Hence enter 20

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