What are the firm ROE and ROIC

Assignment Help Financial Management
Reference no: EM132066968

Baker Industries’ net income is $25,000, its interest expense is $5,000, and its tax rate is 40%. Its notes payable equals $25,000, 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.

Reference no: EM132066968

Questions Cloud

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).
How much should hfi pay for these bonds : ABC Mechatronic Systems has issued 10 year bonds. The face value of these bonds is $1,000,000, How much should HFI pay for these bonds
Develop a protocol for a communication system : Develop a protocol for a communication system and make some simulations about throughput vs self-interference, collision probability, average waiting time
Explain the cause of the problem and connect your solution : Imagine you are writing an opinion piece for the Sunday Review section of The New York Times or for a similar publication.
What are the firm ROE and ROIC : The firm finances with only debt and common equity, so it has no preferred stock. What are the firm’s ROE and ROIC?
Calculate the price of share of company common stock : Stockholders' equity as reported on the firm’s balance sheet = $6.5 billion, Calculate the price of a share of the company's common stock.
Analyze military spending and growth through the lens : Analyze military spending and growth through the lens of the so-called republican dilemma. Do you think this supposed trade-off between security and freedom.
What is its debt-to-capital ratio : The firm's total capital is $140 million and it finances with only debt and common equity. What is its debt-to-capital ratio?
What power is dissipated by an electric range : (a) What power is dissipated by an electric range element that has a resistance of 65 O when drawing a current of Ipeak = 5A?

Reviews

Write a Review

Financial Management Questions & Answers

  The company achieve without having to raise funds externally

How large of a sales increase can the company achieve without having to raise funds externally?

  Determine the net present value of the stream of profits

Build a pro forma (forecasted) income from a economic approach for the same period and determine the expected EVA.

  What percent of sales is spent on capital expenditures

Check out what percent of sales is spent on capital expenditures, and what the expenditures are for (investment in new areas? maintaining existing projects?)

  Determine what kuhn companys wacc will be for this project

Kuhn has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1,555.38.

  New-project analysis-what are the net operating cash flows

What are the net operating cash flows in years 1, 2, and 3? What is the additional (nonoperating) cash flow in year 3?

  What will be betas stock price the stock repurchase

Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares..

  Calculate the impact on annual profits

FINA636I - Multinational Financial Management - Calculate the impact on annual profits (in OMR) of the new proposal under each scenario ( You may make additional assumptions if necessary, but these should be clearly stated)

  Short-term debt increase without pushing

How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0?

  Cost of equity with and without flotation

What is the company's cost of common equity if all of its equity comes from retained earnings?

  Does uncovered interest rate parity hold

Does uncovered interest rate parity hold? What is the arbitrage profit per $100,000 USD?

  What are the expected inflation rates

What are the expected inflation rates in US and UK? What is the expected % change in pound's value over the next year?

  Management expects dividend growth rate to be constant

Staggert Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 6.50 percent. If the required rate of return is 18.0 percent, what is the current va..

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