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A company has $15 billion of sales and $2.5 billion of net income. Its total assets are $7 billion, and its total invested capital equals
A company has $15 billion of sales and $2.5 billion of net income. Its total assets are $7 billion, and its total invested capital equals it total assets. Capital consists of half equity and half debt. The companys interest rate is 6%. The appropriate tax rate is 35%. Compute the following:
a. Return on assets
b. Return on equity
c. Return on invested capital
d. Net profit margin
e. Use DuPont equation to calculate ROE
PLEASE WRITE WORK ON PAPER
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