Solve this problem andBaker Industries' net income is $25,000, itsinterest expense is $5,000, and its tax rateis 45%. Its notes payable equals $25,000,long-term debt equals $70,000,common equity equals $245,000. The firmfinances with only debt and common equity,so it has no preferred stock. What are thefirm's ROE and ROIC? Round your answers totwo decimal places. Do not roundintermediate calculations.

Baker Industries has a 10.20% ROE and a 4.85% ROIC. These ratios provide information on the…

Answered: and Baker Industries' net income is…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

Need answer please
The following is ABC Inc.’s balance sheet (in thousands): Also, sales equal $500, cost of goods sold equals $360, interest payments equal $62, taxes equal $56, and net income equals $22. The beginning retained earnings is $0, the market value of equity is equal to its book value, and the company pays no dividends. Calculate Altman’s Z score for ABC, Inc. if ABC has a 50 percent dividend payout ratio and the market value of equity is equal to its book value. Recall the following: Net working capital = Current assets − Current liabilities Current assets = Cash + Accounts receivable + Inve ntories Current liabilities = Accounts payable + Accruals + Notes payable
Nakamura, Incorporated, has a total debt ratio of .56, total debt of $316,000, and net income of $38,500. What is the company's return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Return on equity %
Folic Acid Inc. has $28 million in earnings, pays $3.8 million in interest 1 bondholders, and $2.4 million in dividends to preferred stockholders. What are the common stockholders' residual claims to earnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Residual claims to earnings million
If you give me wrong answer, I will give you unhelpful rate
Vriend Software Inc.'s book value per share is $13.70. Eamings per share is $1.81, and the firm's stock trades in the stock market at 2.5 times book value per share. What will the P/E ratio be? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) P/E ratio times
Help me
Enter answer to 2 decimal places.
The Blooming Flower Co. has earnings of $1.63 per share. a. If the benchmark PE for the company is 22, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 25, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price b. Stock price
Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) Earnings before interest and taxes Debt (at 7% interest) Equity a. Calculate each company's ROE, ROA, and ROIC. Note: Round your answers to 1 decimal place. × Answer is not complete. Atlantic Corporation Pacific Corporation ROE 35.3% % ROA ROIC % % % % Atlantic Pacific Corporation Corporation $ 530 $ 530 $ 310 $ 1,630 $ 1,050 $ 370
A company has a debt-equity ratio of 1.25. Its weighted average cost of capital is 8.3 percent, and its cost of debt is 5.1 percent. The corporate tax rate is 21 percent. What is the company's cost of levered equity? Enter your answer in the box shown below as a decimal number (not as a percentage) with 4 digits to the right of the decimal point.
The President of Paroy, has asked you to gather some statistics about his Company’s solvency. You have compiled the following data: Net Income Income Tax Rate P 900 000 34% Total Liabilities Total Stockholders 2 048 000 Interest Expense 100 000 Equity 4 352 000 REQUIRED: Using these data, calculate: 1.)Times interest earned ratio 2.)Debt ratio 3.)Equity ratio

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS