Question

a Search this CROE and ROIC Video Excel Online Structured Activity: ROE and ROIC Baker Industries net income is $23000, its
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Net Income = $23000

Interest Expense = $5000

Notes Payable = $23000

Long term Debt = $70000

Common Equity = $245000

Tax rate = 40%

ROE = Net Income / Common Equity = 23000/245000 = 9.38%

ROIC = (Net income - Dividend) / (Debt + Equity)

ROIC = (23000-0)/(70000+245000) = 7.30%

Add a comment
Know the answer?
Add Answer to:
a Search this CROE and ROIC Video Excel Online Structured Activity: ROE and ROIC Baker Industries'...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $25000, its interest expense...

    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...

  • Baker Industries' net income is $27000, its interest expense is $5000, and its tax rate is...

    Baker Industries' net income is $27000, its interest expense is $5000, and its tax rate is 45%. Its notes payable equals $26000, long-term debt equals $80000, 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 to answer the questions below. Open spreadsheet What are the firm's ROE and ROIC?...

  • of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $5,000,...

    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

  • Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net...

    Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $26,000, 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 $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

  • Baker Industries’ net income is $23000, its interest expense is $4000, and its tax rate is...

    Baker Industries’ net income is $23000, its interest expense is $4000, and its tax rate is 35%. Its notes payable equals $26000, long-term debt equals $80000, 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.

  • 17. Problem 4.07 (ROE and ROIC) ebook Problem Walk Through Baker Industries' net income is $21,000,...

    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

  • Video Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of c...

    Video Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,191. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The...

  • 7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC...

    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...

  • ROE and ROIC Hilyard Industries' net income is $27,000, its interest expense is $5,000, and its...

    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

  • SAGE MINDTAP ne Activity: WAC Video Excel Online Structured Activity: WACC The Paulson Company's year and...

    SAGE MINDTAP ne Activity: WAC Video Excel Online Structured Activity: WACC The Paulson Company's year and balance sheet is shown below. Its cost of common equity is 14, before tax cost of debt is 12.and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm total debt which is the sum of the company's short-term debt and long-term debt, equals 51,190. The firm has 576 shares of common stock outstanding that sell...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT