Nextime Ltd. has operating profits (EBIT) of $87 million, a tax rate of 35 percent, net working
Question:
Nextime Ltd. has operating profits (EBIT) of $87 million, a tax rate of 35 percent, net working capital of $129 million, and fixed assets of $285 million. Calculate Nextime's return on invested capital, or ROIC. Then describe three methods by which a firm can increase its ROIC.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
ROIC EBIT x 1 tax rate net working capital fixed assets EBIT 87 milli...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Financial Management Concepts and Applications
ISBN: 978-0132936644
1st edition
Authors: Stephen Foerster
Question Posted:
Students also viewed these Finance questions
-
a. Provide a brief overview of capital structure effects. Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows. b. (1) What is...
-
Ward Corp. is expected to have an EBIT of $1.9 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $165,000, $85,000, and $115,000,...
-
You have been hired as consultants to XrayGlasses Corporation (XGC). XGC is in the process of deciding whether to invest in a new production facility. The new facility will enable it to produce and...
-
The Best Buy Co. Inc. 10-K report has the following footnote related to leasing activities. The future minimum lease payments under our capital and operating leases by fiscal year (not includ- ing...
-
What reinvestment rate assumptions are built into the NPV, IRR, and MIRR methods? Give an explanation (other than because the text says so) for your answer.
-
In Exercise you drew box plots. Draw histograms instead and compare the results. In Exercise, The career-counseling center at a university wanted to learn more about the starting salaries of the...
-
Rafael Sanchez is about to begin his career as a financial investment representative with Strong Point Financial Services, a national company specializing in investment opportunities for individuals....
-
Condensed financial data of Ziebert Company are shown below. Additional information:1. New plant assets costing $146,000 were purchased for cash during the year.2. Investments were sold at cost.3....
-
The David Derrick Insurance company wants to sells a certain policy for $1000 to John Graham Jr. They know from historic data that there is a 1 in 100 chance John will file a $20,000 claim, a 1 in...
-
Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To...
-
Which financial statement presents information related to changes in retained earnings and share repurchase?
-
BE Enterprises has fixed costs of $50 million. Its gross margin percentage is 18 percent. What sales level must it achieve in order to break even?
-
TYV is a manufacturing entity and produces a range of products in several factories. TYV's trial balance at 30 September 2014 is shown below Notes: (i) On 1 October 2013 two of TYV's factories,...
-
Are young New Zealand women having their children at a later age than previous generations? (a) Out of the 314 women in the age group 25 29, 136 report having given birth to their rst child before...
-
Your friend claims that the following series of payments is absolutely worthless since they add up to $0: The time value of money is 18 percent. Determine the present value of these cash flows. End...
-
The accompanying table shows data from the Penn World Table, Version 8.0, for real GDP per capita (2005 U.S. dollars) in France, Japan, the United Kingdom, and the United States in 1950 and 2011....
-
Wesley is an MBA Student with 20 years+ experience in the UK military and most recently three years experience in wildlife conservation in Africa. As part of his research methods module Wesley...
-
What error forecasting measures are associated with moving average; simple exponential smoothing; Holts model; and Winters models? How can the measures be grouped according to their use?
-
a. If 1 SAT score is randomly selected, find the probability that it is between 1440 and 1480. b. If 16 SAT scores are randomly selected, find the probability that they have a mean between 1440 and...
-
[a] Two foam blocks, each with a charge of 19 micro coulombs (1 C = 10-6 C), are both held in place 19 cm apart in the east-west direction. A foam ball with a charge 49 C is placed 55 cm north of the...
-
The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: a. Substitute this expression for beta into the Security Market Line (SML),...
-
The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: a. Substitute this expression for beta into the Security Market Line (SML),...
-
Suppose you are given the following information. The beta of company i, bi, is 1.1, the risk-free rate, rRF, is 7 percent, and the expected market premium, rM - rRF, is 6.5 percent. (Assume that ai =...
-
Exploring Variable Length Parameter Lists The file Parameters.java contains a program to test the variable length method average from Section 7.5 of the text. Note that average must be a static...
-
How would I write a test case for the following steps so that the test cases run properly @Test void dequeueItemsHasRightValuesAndSize() { Queue testQ = new Queue (); int result; enqueueValues(testQ,...
-
Analyse the quality of the Java codes below public static boolean leap(int y) { String tmp = String.valueOf(y); if (tmp.charAt(2) == '1' || tmp.charAt(2) == '3' || tmp.charAt(2) == 5 || tmp.charAt(2)...
Study smarter with the SolutionInn App