Hold significant amount of excess cash

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1. Many companies hold significant amount of excess cash, i.e., cash above the amount required for day to day operations. Does including excess cash as part of invested capital distort the ROIC upward or downward? Why?

2. Under what circumstances would changing the capital structure of an electric utility company affect its value? Please explain in detail with an example. I want each question in 1 page in times new roman - 12 font size

Reference no: EM131123189

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Hold significant amount of excess cash : 1. Many companies hold significant amount of excess cash, i.e., cash above the amount required for day to day operations. Does including excess cash as part of invested capital distort the ROIC upward or downward? Why?
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