Business, 02.06.2020 14:57 hannmq4179

In its 2015 fiscal year annual report, Texas Roadhouse reports net operating income after tax (NOPAT) of $102,495 thousand. As of the beginning of fiscal year 2015 it reports net operating assets of $596,104 thousand.

a. Did Texas Roadhouse earn positive residual operating income (ROPI) in 2015 if its weighted average cost of capital (WACC) is 7%. Explain

1. TXRH earned a negative ROPI because the realized NOPAT exceeds the expected NOPAT.
2. TXRH earned a positive ROPI because the realized NOPAT was less than the expected NOPAT.
3. TXRH earned a positive ROPI because the realized NOPAT exceeds the expected NOPAT. V
4. TXRH earned a negative ROPI because the realized NOPAT was less than the expected NOPAT.

b. At what level of WACC would Texas Roadhouse not report positive residual operating income for 2015?

Answers: 1

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In its 2015 fiscal year annual report, Texas Roadhouse reports net operating income after tax (NOPAT...