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Answer the following questions based on the information in the table below. The tax rate is 40% and all numbers are in dollars, million. For

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Answer the following questions based on the information in the table below. The tax rate is 40% and all numbers are in dollars, million. For simplicity, assume that the companies have NO other liabilities (other than the debt shown in the table, obviously) a. Calculate each company's ROE, ROA, and ROIC. (ROIC stands for Return on Invested Capital, and is very similar to the "Basic Earning Power" we discussed; I have provided the formula for ROIC at the end of the problem) b. Why is Pacific's ROE so much higher than Atlantic's? Does this mean Pacific is a better company? Why or why not? c. Why is Atlantic's ROA higher than Pacific's? What does this tell you about the two companies? d. How do the two companies' ROIC compare? What does this suggest about the two companies? TABLE IS ON THE FOLLOWING PAGE Summary Financial Information (S million) Atlantic Co 450 290 910 EBIT 470 1490 370 Debt (at 8% int

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