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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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
Transcribed Image Text:and
Baker Industries' net income is $25,000, its
interest expense is $5,000, and its tax rate
is 45%. Its notes payable equals $25,000,
long-term debt equals $70,000,
common equity equals $245,000. The firm
finances with only debt and common equity,
so it has no preferred stock. What are the
firm's ROE and ROIC? Round your answers to
two decimal places. Do not round
intermediate calculations.
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