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Torres Products has $ 3 0 million of sales and $ 2 . 5 million of net income. Its total assets are $ 1 7

Torres Products has $30 million of sales and $2.5 million of net income. Its total assets are $17 million.
Assume the companys total assets equal total invested capital, and its capital consists of 25% debt and 75%
common equity. The firms interest rate is 8%, and its tax rate is 35%.
14 What is the firms ROE?
a.11.02 percent
b.14.71 percent
c.15.89 percent
d.17.52 percent
e.19.60 percent
15 What is the firms ROIC?
a.14.71 percent
b.16.01 percent
c.15.23 percent
d.15.98 percent
e. None of the above is within 0.1% of the correct answer

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