Baker Industries’ net income is $26000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $255000. 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.What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.ROEfill in the blank 2%ROICfill in the blank 3% Please don't provide image based solution thanks AROE and ROIC123Net income4 Interest expense567 Long-term debtTax rateNotes payable8 Common equity910 ROE1112 Partial Income Statement:13 EBIT14 Interest15EBT16 Taxes17 Net income1819 Capital Summary:20 Notes payable21 Long-term debt22Common equity23Total invested capital2425262728ROICB$26,000$6,00040.00%$26,000$70,000$255,000$6,000.00$26,000.00$26,000.00$70,000.00$255,000.00сDFormulas#N/A#N/A#N/A#N/A#N/A#N/AEFGHIJK

Financial ratios are the ratios that draw certain results based on relations between various…

Answered: Baker Industries’ net income is $26000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Baker Industries’ net income is $26000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $255000. 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.

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 2%
ROIC	fill in the blank 3%

Please don't provide image based solution thanks

A
ROE and ROIC
1
2
3
Net income
4 Interest expense
5
6
7 Long-term debt
Tax rate
Notes payable
8 Common equity
9
10 ROE
11
12 Partial Income Statement:
13 EBIT
14 Interest
15
EBT
16 Taxes
17 Net income
18
19 Capital Summary:
20 Notes payable
21 Long-term debt
22
Common equity
23
Total invested capital
24
25
26
27
28
ROIC
B
$26,000
$6,000
40.00%
$26,000
$70,000
$255,000
$6,000.00
$26,000.00
$26,000.00
$70,000.00
$255,000.00
с
D
Formulas
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