If a firm’s Return on Invested Capital (ROIC) is consistently greater

If a firm’s Return on Invested Capital (ROIC) is consistently greater than the firm’s cost of capital, then:

A) the firm should consider borrowing more money in an effort to increase the cost of capital.
B) this should help drive up the stock price.
C) the firm’s net working capital is too low.
D) All of the above.

 

 

ANSWER

B

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