Question
ROE AND ROIC Baker Industries net income is $23,000, its interest expense is $5,000, and its tax rate is 35%. Its notes payable equals $26,000,
ROE AND ROIC
Baker Industries net income is $23,000, its interest expense is $5,000, and its tax rate is 35%. Its notes payable equals $26,000, 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 firms ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
| ROE | % |
| ROIC | % |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
