For which situation does additional growth likely create more value?
A)High-ROIC company in a mature market.
B)Low-ROIC company in a fast-growing market.
C)Low-ROIC company in a mature market.
D)Medium-ROIC company in a mature market.

Question

Quizplus · Accepted Answer

High-ROIC (Return on Invested Capital) companies are more efficient at turning capital into profits, so additional growth in any market, even a mature one, is likely to create more value compared to companies with lower ROIC.

For Which Situation Does Additional Growth Likely Create More Value