Based on the data given below, calculate the return on invested capital (ROIC). Net income = $300 NOPAT = $400 Short-term investments = $200 Stockholders' equity = $1,800 Total operating capital = $2,300 Group of answer choices 17.39% 14.91% 15.70% 16.67%

Based on the data given below, calculate the return on invested capital (ROIC). Net income = $300 NOPAT = $400 Short-term investments = $200 Stockholders' equity = $1,800 Total operating capital = $2,300 Group of answer choices 17.39% 14.91% 15.70% 16.67%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1dM

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Question

Based on the data given below, calculate the return on invested capital (ROIC).

Net income = $300

NOPAT = $400

Short-term investments = $200

Stockholders' equity = $1,800

Total operating capital = $2,300

Group of answer choices

17.39%

14.91%

15.70%

16.67%

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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