Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $80000, and common equity equals $250000. 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. ROE and ROIC Net income $24,000 Interest expense $6,000 Tax rate 40.00% Notes payable $27,000 Long-term debt $80,000 Common equity $250,000 Formulas ROE #N/A Partial Income Statement: EBIT #N/A Interest $6,000.00 EBT #N/A Taxes #N/A Net income $24,000.00 Capital Summary: Notes payable $27,000.00 Long-term debt $80,000.00 Common equity $250,000.00 Total invested capital #N/A ROIC #N/A
Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $80000, and common equity equals $250000. 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. ROE and ROIC Net income $24,000 Interest expense $6,000 Tax rate 40.00% Notes payable $27,000 Long-term debt $80,000 Common equity $250,000 Formulas ROE #N/A Partial Income Statement: EBIT #N/A Interest $6,000.00 EBT #N/A Taxes #N/A Net income $24,000.00 Capital Summary: Notes payable $27,000.00 Long-term debt $80,000.00 Common equity $250,000.00 Total invested capital #N/A ROIC #N/A
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
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Question
Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $80000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no
| Net income | $24,000 | |||
| Interest expense | $6,000 | |||
| Tax rate | 40.00% | |||
| Notes payable | $27,000 | |||
| Long-term debt | $80,000 | |||
| Common equity | $250,000 | |||
| Formulas | ||||
| ROE | #N/A | |||
| Partial Income Statement: | ||||
| EBIT | #N/A | |||
| Interest | $6,000.00 | |||
| EBT | #N/A | |||
| Taxes | #N/A | |||
| Net income | $24,000.00 | |||
| Capital Summary: | ||||
| Notes payable | $27,000.00 | |||
| Long-term debt | $80,000.00 | |||
| Common equity | $250,000.00 | |||
| Total invested capital | #N/A | |||
| ROIC | #N/A | |||
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