Tech Wave Solutions has the following financial data: • • . • • Net income: $50,000 Interest expense: $10,000 Tax rate: 35% Notes payable: $50,000 Long-term debt: $120,000 • Common equity: $400,000 The firm finances with only debt and common equity, so it has no preferred stock. Calculate the firm's Return on Equity (ROE) and Return on Invested Capital (ROIC). Round your answers to two decimal places.
Tech Wave Solutions has the following financial data: • • . • • Net income: $50,000 Interest expense: $10,000 Tax rate: 35% Notes payable: $50,000 Long-term debt: $120,000 • Common equity: $400,000 The firm finances with only debt and common equity, so it has no preferred stock. Calculate the firm's Return on Equity (ROE) and Return on Invested Capital (ROIC). Round your answers to two decimal places.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 20P
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Please provide the correct solution to this financial accounting question using valid principles.
Transcribed Image Text:Tech Wave Solutions has the following financial data:
•
•
.
•
•
Net income: $50,000
Interest
expense: $10,000
Tax rate: 35%
Notes payable: $50,000
Long-term debt: $120,000
•
Common equity: $400,000
The firm finances with only debt and common equity, so it has no
preferred stock.
Calculate the firm's Return on Equity (ROE) and Return on Invested
Capital (ROIC). Round your answers to two decimal places.
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