Question
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.
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