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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.

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.

FINANCIAL ACCOUNTING
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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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.
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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