Question: 1 how does return on invested capital roic affect a...
1. How does return on
invested capital (ROIC) affect a company's cash ﬂow?
Explain the relationship between ROIC, growth, and cash ﬂow.
2. If value is based
on discounted cash ﬂows, why should a company or
investor analyze growth and ROIC?
3. Under what circumstances does growth destroy value?