return on capital/ share price outlook

Been interesting to hear the new Ceo's comments since appointment esp re whether the various divisions have the ability to generate an adequate return on capital.

Current return on capital is 8.3%, below the weighted ave cost of capital I would think.

I haven't seen a target yet but at Orica Malcom Broomhead set a target of 18% hurdle for businesses to remain in the stable. Reasonable to expect hes set the new CEO and through him the divisions the same target.

So if we assume an 18% ROCE within 3 years what will be the share price impact. Depends a bit on the the dividend policy , what parts of the portfolio are sold and how that money is reinvested.
Other clear issue is whether it is rated as a growth stock or a yield stock.

I suspect the first two years will be about reshaping the portfolio ( sell ports ??), and the strategy clear, before embarking on strong growth.

I hope to see a share price of between $3.50 and $5.00 but as my wife tells me I'm often wrong