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Total liabilities 9.600 10,000 3.400 Total Stockholder's equity 13,400 Total liab. And stockholder's equity 23,000 9,000 10,000 2,800 12,800 21,800 Common Stock Retained earnings Keith

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Total liabilities 9.600 10,000 3.400 Total Stockholder's equity 13,400 Total liab. And stockholder's equity 23,000 9,000 10,000 2,800 12,800 21,800 Common Stock Retained earnings Keith Corporations Income Statement (2012) Depreciation Expense 1,600 Earning Before Interest and Taxes (EBIT) 2,700 Interest Expense 367 Net Profit After Taxes 1,400 Tax Rate 40% a. Calculate the free cash flow (FCF) for the year ended December 31, 2012? b. Compute Return on invested capital for 2012? If the cost of capital is 10%, how is the firm performing? Discuss. (20 points)

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