What is the company return on invested capital

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Question: 1) Olney Science Corporation has total assets of $275,000 and total debt of $100,000. If it has 40,000 shares outstanding, what is the book value per share?

2) You plan to retire with $1,000,000 savings. How much should you deposit quarterly into a retirement saving account that pays 14 percent annual interest if you plan to retire in 30 years? (Note: Compounding matches the deposit frequency. Answers are rounded.)

3) You are given the following information for Western, Inc.

Sales 240,000

Debt 60,000

Dividends 5,000

Equity 30,000

Interest rate 7%

Net income 16,000

Tax rate 30%

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.)

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

Reference no: EM132753184

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