Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Baker Industries net income is $23,000, its interest expense is $6,000, and its tax rate is 35%. Its notes payable equals $23,000, long-term debt equals

Baker Industries net income is $23,000, its interest expense is $6,000, and its tax rate is 35%. Its notes payable equals $23,000, long-term debt equals $80,000, and common equity equals $255,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firms ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.

ROE %
ROIC %

Thomson Trucking has $15 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 7%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ebay Tips And Tricks To Increase Your Ebay Sales

Authors: Jessica Wilson

1st Edition

1774854015, 978-1774854013

More Books

Students also viewed these Finance questions

Question

What do they do well?

Answered: 1 week ago

Question

(9) What am I doing to develop the poor performers?

Answered: 1 week ago

Question

(4) How much feedback am I giving them on their performance?

Answered: 1 week ago