Financial Accounting Question please answer Aurora Enterprises has the following financial data: Net income: $40,000Interest expense: $8,000 Tax rate: 40% Notes payable: $30,000 Long-termdebt: $90,000 Common equity: $300,000 the firm finances with only debtand common equity, so it has no preferred stock. Calculate the firm'sReturn on Equity (ROE) and Return on Invested Capital (ROIC). Roundyour answers to two decimal places.

Return on Equity (ROE):ROE=Net Income/Common Equity×100ROE=40,000/300,000×100=13.33% Return on…

Answered: Aurora Enterprises has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 20P

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