Use two different methods to calculate ROI given the following information for Brandon Corp. Sales = $500,000;

Question:

Use two different methods to calculate ROI given the following information for Brandon Corp. Sales = $500,000; Cost of goods sold = $100,000; Interest cost $22,500; TC = 40%. The firm’s debt (B = $300,000) accounts for 25 percent of the invested capital. After-tax cost of debt is 4.5 percent.

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...