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Company Q Company R Net Income 350,760 376,900 Interest Expense 150,650 100,765 Effective Tax Rate 23.80% 25.70% Average LT Liab & Equity) 1,376,600 1,576,400 1.
Company Q | Company R | ||||
Net Income | 350,760 | 376,900 | |||
Interest Expense | 150,650 | 100,765 | |||
Effective Tax Rate | 23.80% | 25.70% | |||
Average LT Liab & Equity) | 1,376,600 | 1,576,400 | |||
1. Please calculate the Return on Investments (ROI) for both companies. (30%) | |||||
(2-decimal places) | |||||
2. Which company is more appealing to invest in? Why? (20%) | |||||
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