What is the company return on invested capital

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You are given the following information for Western, Inc.

Sales240,000
Debt60,000
Dividends5,000
Equity30,000
Interest rate7%
Net income16,000
Tax rate30%

Assume the company has no short-term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant. (Hint: First prepare income statement working backwards from the bottom to find EBIT.)

Problem 1:
What is the company's return on invested capital (ROIC)?

Reference no: EM132742081

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