Valuation Approaches and Reinvestment Rate Quiz

Percentage of net income allocated to CapEx and NWC

Percentage of total revenue allocated to CapEx and NWC

Percentage of EBITDA allocated to CapEx and NWC

Percentage of after-tax operating income allocated to CapEx and NWC (correct)

Capital expenditures + Depreciation

Capital expenditures / Depreciation

Capital expenditures * Depreciation

Capital expenditures - Depreciation (correct)

$ROIC = \frac{NOPAT}{Total\,Invested\,Capital}$ (correct)

$ROIC = \frac{EBIT}{Total\,Invested\,Capital}$

$ROIC = \frac{EBITDA}{Total\,Invested\,Capital}$

$ROIC = \frac{Net\,Income}{Total\,Invested\,Capital}$

<p>Reinvestment rate and ROIC</p> Signup and view all the answers

<p>Calculate net CapEx, add change in NWC, divide by tax-affected EBI</p> Signup and view all the answers