Roe = Net income / equity
= 26,000/ 260,000
= 10%
ROIC = Net operating profit after tax / Invested capital
= 28,750 / 340,000
= 8.46%
Notes:
Invested capital = debt + equity
= 80,000 + 260,000
= 340,000
Calculation of Operating profit
Net income = 26,000
+ Tax = 21,272.73
EBT. = 47,272.73
+ interest. = 5,000
Ebit. = 52,272.73
NOPAT = EBIT ( 1-tax)
= 52,272.73 ( 1 - 0.45)
= 52,272.73 (0.55)
= $ 28,750
Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net...
7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $27,000, its interest expense is $6,000, and its tax rate is 40%. Its notes payable equals $25,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate...
of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $5,000, and its tax rate is 35%. Its notes payable equals $25,000, long-term debt equals $75,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round Intermediate calculations. ROE ROIC
k to Assignment Attempts: 0 Keep the Highest: 0/2 7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $6,000, and its tax rate is 35 %. Its notes payable equals $23,000, long-term debt equals $75,000, and common equity equals $255,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROJC? Round...
ROE and ROIC Hilyard Industries' net income is $27,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $26,000, long-term debt equals $80,000, and common equity equals $255,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. ROE ROIC
17. Problem 4.07 (ROE and ROIC) ebook Problem Walk Through Baker Industries' net income is $21,000, its interest expenses $4,000, and its tax rate is 25%. Its notes payable $24,000, long term debt equals $70,000, and commun qully equals 1255,000 fem finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC Do not found intermediate calculations. Round your answers to two decimal places ROE: ROIC
Be eBook Baker Industries' net income is $23,000, its interest expense is $4,000, and its tax rate is 40%. Its notes payable equals $25,000, long-term debt equals $80,000, and common equity equals $240,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE % ROIC 9
Baker Industries' net income is $27,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $26,000, long-term debt equals $75,000, and common equity equals $250,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: %
Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $25000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet...
a Search this CROE and ROIC Video Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $23000, its interest expense is $5000, and its tax rate is 40%. Its notes payable equals $23000, long-term debt equals $70000, and common equity equals $245000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis...
Ch 04: End-of-Chapter Problems - Analysis of Financial Statements < Back to Assignment Attempts: Keep the Highest: 12 7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $24,000, its interest expense is $6,000, and its tax rate is 40%. Its notes payable equals $27,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock....