Question

P Herring Corporation has operating income of $235,000 and a 40% tax rate. The firm has short-term debt of $115,000, long-term debt of $321,000, and common equity of $436,000. What is its return on invested capital? a . 15.50% O b. 16.17% DOC. 18.27% O d. 14.92% O e 17.42%

Answer 1

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ACCOUNTS latest - Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins Σ AutoSum - Cut AC Wrap Text Calibri 11 General E Copy Fill в IU Merge & Center Insert Delete Format Paste +.0 .00 Conditional Format Cell Sort & Find & % KH .00 0 Format Painter Clear Filter Select Formatting as Table Styles Number Editing Clipboard Font Alignment Styles Cells fox 099 G H J K L M P Q U Invested capital = 115000 short term debt 80 321000 long term debt 81 436000 common equity 82 Invested capital 83 872000 84 OPERATING INCOME(1-t) / INVESTED CAPITAL 235000*(1-0.40)/872000 ROIC 85 ROIC 86 ANS: b: ROIC 16.17% 87 88 89 NET INCOME = 1410000 634500 [1410000 X 45%] 90 PAYOUT = NO OF SHARES ANS : c: DIVIDEND PER SHARE = 91 225000 2.82 [634500/225000] 92 93 NET INCOME/EQUITY 94 ROE = 70000/370000 ROE= 95 ANS d 18.92% 96 ROE = 97 NET INCOME/SALES 98 PROFIT MARGIN = 23000/250000 99 PROFIT MARGIN = ANS : a: PROFIT MARGIN = ВЕР, OL FL 100 9.20% B-S profit loss dupont DIFF ANALYSIS overhead Sheet2 Sheet3[ DETROIT float VARIANCE ratios SALES BUDGET ORDER BOOK COMMON INCOME extra Rea II erences 120% WA X 03:42 ENG 20-11-2019