Question
Baker Industries net income is $24000, its interest expense is $6000, and its tax rate is 45%. Its notes payable equals $26000, long-term debt equals
Baker Industries net income is $24000, its interest expense is $6000, and its tax rate is 45%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $245000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
What are the firms ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
| ROE | fill in the blank |
| ROIC | fill in the blank |
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Monetary Policy And Public Finance
Authors: G. C. Hockley
1st Edition
1138704792, 978-1138704794
