Homework Answers
| ROA = Net income / Total assets | |
| 8% = 567000 / Total assets | |
| Total assets = 567000 / 8% | 7087500 |
| Total invested capital = Total assets - Accounts payables and accruals = 7087500 - 1000000 | 6087500 |
| Common equity = Total invested capital * 60% = 6087500 * 60% | 3652500 |
| Earnings before taxes = Net income / ( 1 - Tax% ) = 567000 / ( 1 - 25% ) | 756000 |
| Earnings before interest and taxes (EBIT) = Earnings before taxes + Interest expense = 756000 + 221130 | 977130 |
| BEP = EBIT / Total assets = 977130 / 7087500 | 13.79% |
| ROE = Net income / Common equity = 567000 / 3652500 | 15.52% |
| ROIC = EBIT * ( 1 - Tax% ) / Total invested capital = 977130 * ( 1 - 25% ) / 6087500 | 12.04% |
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Keep the Highest: 0/3 Attempts: 9. Problem 4.09 (BEP, ROE, and ROIC) еВook Problem Walk-Through Broward...
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