Companies with a ________ ROIC typically create more value by focusing on growth rather than focusing on its ROIC.
High |
Low |
Companies with a ________ ROIC typically create more value by focusing on growth rather than focusing...
The definition of Net Debt is: a. total debt-excess cash b available debt-available cash c.total debt- total equity d.total debt-total assets 2. Companies with a ________ ROIC typically create more value by focusing on growth rather than focusing on its ROIC. a- high b- low 3. For a given company, next year's NOPAT is anticipated to be $300. The company expects annual growth of 5%, its ROIC is 15%, and its weighted-average cost of capital (WACC) is 13%. Using the...
Part (a) "Companies create value for their owners by investing cash now to generate more cash in the future. The amount of value created is the difference between investments made and cash inflows -- adjusted for the fact that tomorrow's cash flows are worth less than today's, due to the time value of money and riskiness of future flows. As demonstrated later, a company's return on invested capital (ROIC)*, and its revenue growth, determine how revenues get converted into cash...
When a company has an ROIC greater than its cost of capital, faster growth increases value, but when it has an ROIC less than its cost of capital, what is the effect on value? a. Faster growth creates value O b. Faster growth destroys value O c. Growth doesn't affect value creation O d. None of the above are true
Process costing rather than job order costing is more appropriate for service companies. O O True False
Eight-year-old Marshall focuses on several different aspects of a problem and relates them, rather than focusing on just one. Marshall is exhibiting conservation. seriation. reversibility. decentration.
Question 5 (1 point) Saved "Growth" companies often payout a low percentage of their annual earnings in the form of dividends because, these companies tend to reinvest earnings generated by their operations into the their business to help finance their growth. Whereas "mature" companies that lack significant growth opportunities often distribute a high percentage of their net income as dividends. True False Question 9 (1 point) The following scenarios have the same impact on "Total Stockholders' Equity", but Scenario A...
Why are high-rise buildings typically constructed in cities rather than in rural areas? O Land and capital are substituted for labor. O Labor and capital are substituted for land, which is very expensive. O Labor and capital are substituted for land because they are inexpensive. O Land and labor are substituted for capital.
When companies engage in value-creating activities, they do so by a) focusing on exploiting a company's best-executed operating strategy. b) concentrating on efficient performance of the company's primary value chain activities. c) concentrating on minimizing the costs associated with the design of a product or service d) drawing on specific company resources and capabilities that underlie and enable the activity. e) focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals
5. In defining development to include more than just the growth of per capita income, there is an implicit assumption that the growth of per capita income alone is not sufficient to guarantee the reduction of poverty and the growth of self- esteem. Is it possible that there could be growth of per capita income without the achievement of these other objectives? 6. Explain (provide an economic intuition) how the following characteristics that are common to developing countries affect economic...
What are some of the consequences for companies in their use of estimates rather than actual amounts for some financial statement items?