You are forecasting the operating earnings for TalkMedia, a young, high growth social media company. Revenues...

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You are forecasting the operating earnings for TalkMedia, a young, high growth social media company. Revenues Last year 1 $100 $200 2 -5% $320 $450 Operating Margin -10% Operating Income -$10.00 $10.00 $0.00 $22.50 $60.00 $600 0% 5% 10% The firm currently has invested capital of $50 million. If the sales-to-capital ratio is 2.00, what will the pre-tax return on capital be in year 4? You are forecasting the operating earnings for TalkMedia, a young, high growth social media company. Revenues Last year 1 $100 $200 2 -5% $320 $450 Operating Margin -10% Operating Income -$10.00 $10.00 $0.00 $22.50 $60.00 $600 0% 5% 10% The firm currently has invested capital of $50 million. If the sales-to-capital ratio is 2.00, what will the pre-tax return on capital be in year 4?

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