Question: Consider the following statements: Statement 1: All else equal, at a steady growth level, as Return on Invested Capital (ROIC) increases free cash flow decreases.

Consider the following statements: Statement 1: All else equal, at a steady growth level, as Return on Invested Capital (ROIC) increases free cash flow decreases. Statement 2: As growth increases, value is neutral to the extent cost of capital is above ROIC. Which of the following is most likely correct? A. Only Statement 1 is correct B. Only Statement 2 is correct C. Both Statements are correct D. Both Statements are incorrect
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