a.ROIC = EBIT(1-T)/Capital
LL = 3.15 million(1-40%)/21 million = 9%
HL = 3.15 million(1-40%)/21 million = 9%
b.Return on Equity = Income for Equity/Equity Funds
LL = (3.15 million – 0.378)(1-40%)/16.8
= 9.9%
HL = (3.15 – 1.386)(1-40%)/8.4
= 12.6%
c.ROE = (3.15 – 1.89)(1-40%)/8.4
= 9%
Attempts: Keep the Highest: /5 3. Problem 13.05 Click here to read the eBook: Business and...
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