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What is the company return on invested capital

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Question: You are given the following information for Western, Inc. Sales 240,000 Debt60,000 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: EM132758942

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