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- Suppose a company’s return on invested capital is less than itsWACC. What happens to the value of operations if the salesgrowth rate increases? Explain your answer.Suppose a company’s return on invested capital is less than itsWACC. What happens to the value of operations if the salesgrowth rate increases?suppose a company's return on invested capital is less than its wacc. what happens to the value of operations if the sales growth increases? Explain your answer
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- Hi can i calculate the value of a firm by discounting the Unlevered net incomes?Which of the following would increase a company’s additional financing needed (AFN)? a) the company’s profit margin increases b) the company’s dividend payout ratio decreases c) the company’s profit margin decreases d) the company has a lot of excess asset capacity e) none of the aboveAnswer quickly please The _________ is the internal rate of return a firm must earn on its investment in order to maintain the market value of its stock. a. IRR b. net profit margin c. Cost of Capital d. gross profit margin
- Ma4. Hello, Please analyze this firm's performance if the revenue is increasing or decreasing compared to the industry average or if the profitability is stable or rising. Please include if the company needs to create or capture value or if they are creating or capturing value.Which of the following does NOT always increase a company’s MVA? Group of answer choices: Increasing the expected growth rate of sales Decreasing the capital requirements (Capital/Sales) Decreasing the weighted average cost of capital Increasing the expected operating profitability (NOPAT/Sales) Increasing the expected rate of return on invested capitalHow does Net Proft Margin, ROA, and ROE determine a firm's financial profitability?