Question: True or False High-ROIC companies typically create more value by attempting to the ROIC while lower-ROIC companies create more value by growing the corporation. Most

True or False High-ROIC companies typically create more value by attempting to the ROIC while lower-ROIC companies create more value by growing the corporation. Most often in mature companies, a low ROIC indicates what?

True or False When choosing between earnings and cash flow, managers should concentrate on earnings because earning correlate more closely with value creation than cash flow.

True or False With respect to countries, the core valuation principle is applicable, as made evident by the fact that U.S. companies trade at higher multiples than companies in other countries.

When comparing the effect of an increase in growth on a high-ROIC company and a low-ROIC company, a 1 percent increase in growth will have the greatest impact on value for which company? (High ROIC or Low ROIC) pick one

True or False ABC Corporation has a ROIC of 22% currently. There is a new project with an ROIC of 18% and a cost of capital of 13%. ABC should reject this project because the project will lower the companies ROIC. How do you calculate economic profit?

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