Question
Runner Mills is a division of Iowa Woolen Products. For the most recent year, Runner had net income of $18,000,000. Included in income was interest
Runner Mills is a division of Iowa Woolen Products. For the most recent year, Runner had net income of $18,000,000. Included in income was interest expense of $1,260,000. The operations tax rate is 20 percent. Total assets of Runner Mills are $211,500,000, current liabilities are $46,800,000, and $32,400,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Runner Mills. (Round ROI to 2 decimal places, e.g. 15.25.)
NOPAT | $19,008,000 | ||
---|---|---|---|
Invested capital | $179,100,000 | ||
ROI | 10.61% |
Can someone please help me with the ROI portion of the question above? I keep getting 10.61%, and the NOPAT and Invested capital noted above are correct. What step am I missing, please help!
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