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Davenport Mills is a division of Iowa Woolen Products. For the most recent year, Davenport had net income of $20,000,000. Included in income was interest
Davenport Mills is a division of Iowa Woolen Products. For the most recent year, Davenport had net income of $20,000,000. Included in income was interest expense of $1,400,000. The operations tax rate is 40 percent. Total assets of Davenport Mills are $235,000,000, current liabilities are $52,000,000, and $36,000,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Davenport Mills. (Round ROI to 2 decimal places, e.g. 15.25%.)
NOPAT | $ | ||
Invested capital | $ | ||
ROI | % |
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