Calculate operating return on assets

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Reference no: EM132658696

Maxwell Industries recently reported the following information:

Net income $ 400,000

ROA 8%

Interest expense $ 200,000

Accounts payable and accruals $1,000,000

Maxwell's tax rate is 30%. Maxwell finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its operating return on assets (OROA), its return on equity (ROE), and its return on invested capital (ROIC).

Reference no: EM132658696

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