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Question
Given the following entries, compute ROIC based on beginning-of-the-year investments. Assume that all invested capital entries are beginning-of-the-year entries and all income statement entries are for the entire year.
Reported EBITA = 1,000
Reserve for plant decommissioning = 2,000
Interest associated with plant decommissioning = 200
Reserve for restructuring = 600
Equity = 4,000
a) 12.12 percent.
b) 181 percent.
c) 18.18 percent.
d) 22.22 percent.
Answer
This answer is hidden. It contains 14 characters.
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