Question
Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies
Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) Earnings before interest and taxes Debt (at 7 interest) Equity a. Calculate each company's ROE, ROA, and ROIC. Note: Round your answers to 1 decimal place. ROE ROA ROIC Atlantic Corporation Pacific Corporation % % % % Atlantic Corporation $ 440 $ 290 $ 960 Pacific Corporation $ 520 $ 1,540 $ 370
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