Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE fill in the blank % ROIC fill in the blank %
Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE fill in the blank % ROIC fill in the blank %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no
Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet.
What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
ROE fill in the blank %
ROIC fill in the blank %
Transcribed Image Text:Excel
File
B10
1
2
template - Saved ✓
A
ROE and ROIC
8
9
10 ROE
Home
3
Net income
4 Interest expense
5
Tax rate
6 Notes payable
7 Long-term debt
Common equity
18
19 Capital Summary:
20 Notes payable
11
12 Partial Income Statement:
13 EBIT
14 Interest
15
EBT
16
Taxes
17 Net income
21 Long-term debt
22 Common equity
23
24
25 ROIC
26
27
28
29
Insert Draw
Arial
Total invested capital
= A Sheet1
fx
+
B
Page Layout
10
$24,000
$4,000
45.00%
$24,000
$70,000
$240,000
$4,000.00
$24,000.00
$24,000.00
$70,000.00
$240,000.00
Calculation Mode: Automatic Workbook Statistics
с
B
Formulas Data
CL
D
Formulas
#N/A
#N/A
#N/A
#N/A
#N/A
A
#N/A
E
Search (Alt + Q)
Review
F
View
G
Help
H
Merge ✓
I
Editing ✓
Percentage
J
K
$
L
←0
.00
.00 →.0
M
N
O
P
Loading Add-ins
EV BV Ov
Q
R
S
Give Feedback to Microsoft
Comments
T
100% +
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education