Question: Hello, Please find attachment herewith below. Thanks. 1. JetCo is a manufacturer of high-speed aircraft. The company generates $100 million in operating profit on $600

 Hello, Please find attachment herewith below. Thanks. 1. JetCo is a

Hello, Please find attachment herewith below. Thanks.

manufacturer of high-speed aircraft. The company generates $100 million in operating profit

1. JetCo is a manufacturer of high-speed aircraft. The company generates $100 million in operating profit on $600 million of revenue and $800 million of invested capital. JetCo's primary competitor, Gulf Aviation, generates $100 million in NOPLAT on $800 million in revenue. Gulf Aviation has $600million in invested capital. Based on the preceding data, which company is creating value? Assume an operating tax rate of 25 percent and cost of capital of 8 percent. (1 page - Times New Roman - 12) 2. Using the data presented in Question 1, decompose ROIC into operating margin and capital turnover for each company. Which ratio is the key determinant of ROIC: operating margin or capital turnover? (1 page - Times New Roman - 12)

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