Question
Based on the information provided below for Atlantic Corp. and Southern Corp., assess the financial performance of these companies. The tax rate is 40% and
Based on the information provided below for Atlantic Corp. and Southern Corp., assess the financial performance of these companies. The tax rate is 40% and the interest rate is 10%. For simplicity, assume that the companies have no other liabilities other than the debt specified.
Atlantic Corp. | Southern Corp. | |
EBIT | 582 | 591 |
Debt | 420 | 1610 |
Equity | 1030 | 490 |
__________________
Calculate ROE, ROA and ROIC for the companies!
Enter your answer as a percentage between 0% and 100% with two decimal numbers ___________________ OBS!!!! (I struggle finding HOW to calculate the Net Income as well, i have 349,2 and 354,6 but both are wrong, and therefore i cant find NOPAT or IC either) I know the fromulas are:
= / = / ROIC = NOPAT / Invested Capital
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started