What are the firm ROE and ROIC

Assignment Help Financial Management

Reference no: EM131583378

Baker Industries’ net income is $24,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $24,000, long-term debt equals $80,000, and common equity equals $240,000. 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 =

Reference no: EM131583378

Questions Cloud

What will happen to the price of non-tendered shares : Assuming you get 50 % control, what will happen to the price of non-tendered shares?

What is the range of lease payment that would acceptable : What is the range of lease payment that would acceptable from the Lessee and the Lessor’s view point.

Spot exchange rate between the euro and the dollar : what is the spot exchange rate between the euro and the dollar?

What is its total assets turnover and equity multiplier : Henderson's Hardware has an ROA of 11%, a 3% profit margin, and an ROE of 16%. What is its total assets turnover? What is its equity multiplier?

What are the firm ROE and ROIC : What are the firm’s ROE and ROIC?

Result in maximizing the shareholders wealth : Why would the suggested approach of using the cost of new debt as the hurdle rate probably not result in maximizing the shareholders wealth?

What was interest expense : Its EBIT was $14.4 million, and its tax rate was 40%. What was its interest expense?

What is the cross rate between the yen and the peso : What is the cross rate between the yen and the peso; that is, how many yen would you receive for every peso exchanged?

Under expectations theory : Under the Expectations Theory, if today's one year spot rate is 2%, the forward one-year rate in one year is 3%,

User Account

All Pages