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Baker Industries' net income is $24000, its interest expense is $5000, and its tax rate is 35%. Its notes payable equals $26000, long-term debt equals
Baker Industries' net income is $24000, its interest expense is $5000, and its tax rate is 35%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $255000. 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 firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE ROIC ROE and ROIC Net income Interest expense Tax rate Notes payable Long-term debt Common equity $24,000 $5,000 35.00% $26,000 $70,000 $255,000 Formulas #N/A ROE #N/A $5,000.00 Partial Income Statement: EBIT Interest EBT Taxes Net income #N/A #N/A $24,000.00 Capital Summary: Notes payable Long-term debt Common equity Total invested capital $26,000.00 $70,000.00 $255,000.00 #N/A ROIC #N/A
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