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Please answer all questions Baker Industries' net income is $21,000, its interest expense is $6,000, and its tax rate is 25%. Its notes payable equals
Please answer all questions
Baker Industries' net income is $21,000, its interest expense is $6,000, and its tax rate is 25%. Its notes payable equals $24,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: % Broward Manufacturing recently reported the following information: Net income $546,000 ROA 10% Interest expense $191,100 Accounts payable and accruals $1,050,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. BEP: ROE: ROIC: % %Step by Step Solution
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