Question
ROE and ROIC Hilyard Industries net income is $27,000, its interest expense is $4,000, and its tax rate is 40%. Its notes payable equals $24,000,
ROE and ROIC
Hilyard Industries net income is $27,000, its interest expense is $4,000, and its tax rate is 40%. Its notes payable equals $24,000, long-term debt equals $75,000, and common equity equals $255,000. 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.
| ROE | % |
| ROIC | % |
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
