Question
Baker Industries net income is $25000, its interest expense is $4000, and its tax rate is 35%. Its notes payable equals $23000, long-term debt equals
Baker Industries net income is $25000, its interest expense is $4000, and its tax rate is 35%. Its notes payable equals $23000, long-term debt equals $80000, and common equity equals $240000. 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. What are the firms ROE and ROIC?
Round your answers to two decimal places. Do not round intermediate calculations.
ROE fill in the blank 2 %
ROIC fill in the blank 3 %
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Basic Finance An Introduction To Financial Institutions, Investments And Management
Authors: Herbert B Mayo
9th Edition
0324322291, 9780324322293
