Question
Baker Industries net income is $23000, its interest expense is $6000, and its tax rate is 35%. Its notes payable equals $24000, long-term debt equals
Baker Industries net income is $23000, its interest expense is $6000, and its tax rate is 35%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $250000. 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.
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann, Francesco Fabozzi
9th Edition
1260473899, 978-1260473896
