Question: Tensorflop Inc. currently have a return on capital (ROC) equal to 12.5%, a weighted average cost of capital (WACC) equal to 12.5% and a capital

Tensorflop Inc. currently have a return on capital (ROC) equal to

Tensorflop Inc. currently have a return on capital (ROC) equal to 12.5%, a weighted average cost of capital (WACC) equal to 12.5% and a capital reinvestment rate of 60% leading to a forward EV EV ratio of 8. What would happen to their forward ratio if they EBIT11-Tc) EBIT (1-TC) reduce their capital reinvestment rate to 0% in perpetuity? 6 C 4 o 8 10

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