Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you add in excel entries too? Thank you! Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $24000, its interest expense

Can you add in excel entries too? Thank you!
image text in transcribed
image text in transcribed
Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $24000, its interest expense is $6000, and its tax rate is 35%. Its notes payable equals $27000, 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. \begin{tabular}{l|r} ROE & % \\ ROIC & % \end{tabular} \begin{tabular}{|c|c|c|c|} \hline A & B & C & D \\ \hline \multicolumn{4}{|l|}{ ROE and ROIC } \\ \hline Net income & $24,000 & & \\ \hline Interest expense & $6,000 & & \\ \hline Tax rate & 35.00% & & \\ \hline Notes payable & $27,000 & & \\ \hline Long-term debt & $70,000 & & \\ \hline \multirow{2}{*}{ Common equity } & $255,000 & & \\ \hline & & & Formulas \\ \hline ROE & 9.41% & & \#N/A \\ \hline \multicolumn{4}{|l|}{ Partial Income Statement: } \\ \hline EBIT & & hs & \#N/A \\ \hline Interest & $6,000.00 & & \\ \hline EBT & & & \#N/A \\ \hline Taxes & & & \#N/A \\ \hline Net income & $24,000.00 & & \\ \hline \multicolumn{4}{|l|}{ Capital Summary: } \\ \hline Notes payable & $27,000.00 & & \\ \hline Long-term debt & $70,000,00 & & \\ \hline Common equity & $255,000.00 & & \\ \hline Total invested capital & $352,000.00 & & =SUM(B20:B22) \\ \hline ROIC & & & \#N/A \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Financial Analytics The Path To Investment Profits

Authors: Edward E Williams, John A Dobelman

1st Edition

9813224258, 978-9813224254

More Books

Students also viewed these Finance questions