Calculate its basic earning power-its return on equity

Assignment Help Financial Management
Reference no: EM131588255

Broward Manufacturing recently reported the following information:

Net income $490,000

ROA 11%

Interest expense $166,600

Accounts payable and accruals $950,000 Broward's tax rate is 40%.

Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Round your answers to two decimal places.

Reference no: EM131588255

Questions Cloud

What is the price-earnings ratio and market-to-book ratio : What is the market-to-book ratio at the end of 2015? What are the dividends per share? What is the price-earnings ratio?
Describe the challenges of succession planning : Describe the challenges of succession planning. Discuss the statistics on succession planning.
Discuss dells approach to building his brand : Identify which performing culture best suits your philosophy regarding change management and provide your rationale.
What the difference between positions and interests : What the difference between positions and interests? If in a recruitment negotiation, where a candidate is being offered a job and is negotiating employment.
Calculate its basic earning power-its return on equity : Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).
Draw a table around this matrix : I Currently have a code that prints out a matrix - I am trying to draw a table around this matrix as in the given picture.
Discuss communication is a skill that develops over time : Consider where you started the class and compare it to your thoughts on professional communications at midterms. What is your biggest surprise so far
Identify the laws protecting workers against discriminatory : Compare how express, implied, and apparent authority created by the principal and agent impacts equal opportunities for employees.
Analyze benefits of and barriers to medical tourism : Then, recommend marketing strategies to help consumers overcome potential barriers and seek medical care outside of their home countries.

Reviews

Write a Review

Financial Management Questions & Answers

  Explain reasoning to receive full credit

The time to complete a construction project is normally distributed with a mean of 40 weeks and a standard deviation of 5 weeks. For each item below, remember to show your calculations / explain reasoning to receive full credit.

  Pay at the end of the first year of holding the bond

You just purchased a 12-year, $1,000 face value, zero coupon bond with a yield to maturity of 10%. If your tax rate is 30%, how much in taxes will you have to pay at the end of the first year of holding the bond? What did you pay for it? X yield rate..

  Contemplating replacing current fleet of delivery vehicles

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans.

  Tax repatriation is hot issue in regards to corporate tax

The issue of tax repatriation is a hot issue in regards to corporate tax policy. Would it be wise to lower the corporate tax rate for all US companies?

  What second year rate would make timmy indifferent

What second year rate would make Timmy indifferent from purchasing a 2 one year T-Bills or one 2 year T-Strip?

  The yield to maturity on comparable-risk bond

How does the value change if the yield to maturity on a? comparable-risk bond? (i) increases to 14 percent or? (ii) decreases to 6 ?percent?

  Capital investment and concept check

To illustrate and further support our strategic financial planning systems we need to show the CFO and management team an example of the application of the previously constructed WACC. Capital investment: Acme is planning construction of a new loadin..

  Daily variance and daily standard deviation

Create a column of daily returns and compute the daily (arithmetic) average return, the daily variance, and the daily standard deviation.

  The overall standard deviation of returns of the portfolio

The standard deviation of Home Depot Share prices is 30% and that of General Motors shares is 30%. When I hold both stocks in my portfolio and the stocks returns have zero correlation, the overall standard deviation of returns of the portfolio is:

  College education problem

To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?

  What is the project operating cash flow for the first year

Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) 7 millio..

  Decides to perform more office work and less surgery

For a 4 person surgical group, what kind of formula may be devised to fairly and consistently measure and reward productivity? What changes may be needed if one surgeon decides to perform more office work and less surgery?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd