Calculate roic for both companies for fiscal

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Reference no: EM132664369

Problem 1. Calculate ROIC for both companies for fiscal 2011. For calculations requiring a tax rate, assume 33.3% for LVMH (the French corporate rate), and 35% for Warnaco (the U.S. corporate rate). Based on this analysis alone, how do the companies compare in terms of their performance?

Problem 2. Review the description of each company above and think about the strategic positioning of their products. How are the two companies similar, and how are they different?

Problem 3. Breakdown ROIC into its components, NOPM and IC turnover.

Problem 4. Based on your calculations in 3 , and your analysis in 2., does the breakdown for ROIC into NOPM and IC turnover align with your expectations regarding company strategy? What does this say about management's ability to deliver performance in accordance with their stated objectives?

Reference no: EM132664369

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