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Question
Assuming the tax rate remains constant, what will be the effect on the value-to-EBITA ratio of doubling the following inputs: growth, ROIC, and WACC?
a) The value-to-EBITA ratio will fall, but the amount is uncertain.
b) The value-to-EBITA ratio will decrease by 50 percent.
c) The value-to-EBITA ratio will increase, but the amount is uncertain.
d) The value-to-EBITA ratio will double.
Answer
This answer is hidden. It contains 14 characters.
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