Question
The following information relates to questions 4 - 5. A corporation has net income of $1,311 million, after-tax interest ex- pense of $477.4 million, debt
The following information relates to questions 4 - 5.
A corporation has net income of $1,311 million, after-tax interest ex- pense of $477.4 million, debt of $7,018 million, shareholders equity of $9,724 million, and total assets of $9,470 million.
4.Give the above information, what is the return on capital (ROC) of this corporation? (Hint: Use 3 decimal points for your calculations.) A. 14.7% B. 12.8%
C. 11.4% D. 10.6% E. None of the above.
5.Given the above information, what is the return on assets (ROA) of this corporation? (Hint: Use 3 decimal points for your calculations.)
A. 11.6% B. 13.9%
C. 17.8% D. 10.6% E. None of the above.
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