Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. 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. Open spreadsheet.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 %ROIC fill in the blank % ExcelFileB1012template - Saved ✓AROE and ROIC8910 ROEHome3Net income4 Interest expense5Tax rate6 Notes payable7 Long-term debtCommon equity1819 Capital Summary:20 Notes payable1112 Partial Income Statement:13 EBIT14 Interest15EBT16Taxes17 Net income21 Long-term debt22 Common equity232425 ROIC26272829Insert DrawArialTotal invested capital= A Sheet1fx+BPage Layout10$24,000$4,00045.00%$24,000$70,000$240,000$4,000.00$24,000.00$24,000.00$70,000.00$240,000.00Calculation Mode: Automatic Workbook StatisticsсBFormulas DataCLDFormulas#N/A#N/A#N/A#N/A#N/AA#N/AESearch (Alt + Q)ReviewFViewGHelpHMerge ✓IEditing ✓PercentageJK$L←0.00.00 →.0MNOPLoading Add-insEV BV OvQRSGive Feedback to MicrosoftCommentsT100% +

ROE means return on equity, means how much net income has been generated on common equity of the…

Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. 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. Open spreadsheet. 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 % ROIC fill in the blank %

Baker Industries’ net income is $24000, its interest expense is $4000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $70000, and common equity equals $240000. 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. Open spreadsheet. 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 % ROIC fill in the blank %

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter9: Projecting Financial Statements

Section: Chapter Questions

Problem 3bM

See similar textbooks

Similar questions

QUESTION 1 Given the following information Please calculate the Free Cash Flow to Equity EBIT Net Income Tax rate Depreciation Capital expenditure 2207.9 1513.5 21.80% 1807.1 954.6 Change in non-cash Working Capital -2176.3 Change in long term debt Interest Expense Liabilities Total Long Term debt Total Assets 4755 5470 3902 5628 927.6 395.3 24511.8 13220.6 26168.2
Financial Plan Components Cost Weights Weighted Cost A Debt 7.15% ? ? A Equity 5.15% 55% ? Weighted Average Cost of capital FIND B Debt 9.90% 60% ? B Equity 11.50% ? ? Weighted Average Cost of capital FIND C Debt 150000 7.15% ? ? C Equity 450000 5.15% ? ? Weighted Average Cost of capital FIND D Debt 300000 7.15% ? ? D Equity 300000 5.15% ? ? Weighted Average Cost of capital FIND Q1) Find Weighted Average capital for financial Plan C Q2) Find Weighted Average capital for financial Plan D Q3) Find Weighted Average capital for financial Plan A Q4) Find Weighted Average capital for financial Plan B
Q#2:Debt to Assets Ratio Debt to Equity Before-tax cost of debt0.0 0 6%0.1 0.11 7%0.2 0.25 9%0.3 0.43 12.5%0.4 0.66 15.5%Krf= 3%, Market Risk Premuim = 5%, T=30%, BUL = 0.9.Required: Determine, its capital structure. Q#3: A firm has 20 million shares outstanding, with a $30 per share market price. The firm has $10million in extra cash that it plans to use in a stock repurchase;…
Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% %$4 1700 8% Fixed rate $500 9% $1500 5% Non earning $ 5100 $. 1800 Equity 1900 Total $ 6900 $6900 What is the Net Interest Margin (NIM)
What is present Value at TO for following receipts? Cost of capital is 7%. T1 T2 T3 T4 - 0 £100 £120 £110 £110+3% 2383 2283 3823 2833
LiabilitiesOMRAssetsOMRShare capital400,000Land and building280,000Net profit60,000Plant and machinery700,000General reserve80,000Stock400,000Debentures840,000Debtors200,000Creditors200,000Bills receivables20,000Bills payable100,000Cash80,000Total1,680,000Total1,680,000 1>calculate total current liabilites 2>calculate total Current assets
Q10) What is the correct amount of NPV from the given details * Particulars Initial Investment Year 1 Cash flow Year 2 Cash flow Year 3 Cash flow Year 4 Cash flow Year 5 Cash flow Cost of Capital Amount (Rs) 2750 800 800 800 800 800 6%
Weighted Average Cost of Capital (WACC) using Table (Problem 11 in text) Financing Source Dollar Amount % Weight Interest Cost of Rate Capital After Tax Cost (D X (1-tax rate) Component to Sum (FXC) Short Term Note $ 200,000.00 15% Long Term Note $ 300,000.00 18% Equity Capital $ 500,000.00 25% Assumes 30% Tax Rate SOLVE FOR YELLOW HIGHLIGHTED BLOCKS WACC
le1.du.edu.om/mod/quiz/attempt.php?attempt=3518968&cmid3229109&page%=D2 Google Translate Moodle English (en) - purses / BUSS 105-5-20202 / General / TEST 2 Suppose a firm is using only two forms of financing i.e. Debt and Equity. Consider the following capital structure with different debt-equity combinations and calculate Weighted Average Cost of Capital Components Cost Weight Debt 7.85% 45% Equity 26.70% Select one: O a. 18.21% O b. 17.52% O G. 17.50% O d. None Wiole 18% U ENG A 40) A s 米 % $ 4. 8 #3 3. V Y 1 F 1 H K G
launch.jsp?course_assessment_id=_163450_1&course_id=_281293_1&content_id%= 2196275_ دقائق. 1 1 ثانية )ثوان(۔ For a given cash flow diagram, if the interest rate i=10% , and A=$700, the F value is closest to: A F=? Years 3 i=10 % P=$ 4000 $2 $2 فرسال الحعظ والإرسات. ونفرفوق "حفط كل الإجابات"لحفظ كل الإجابات. حفظ كافة الإجابات hp ho 19 44 10 & 7 8. % A toN
IftheboarddeclaresearningsofPhP5.50pershareandtheinvestorown3000sharesofstock,howmuch would be the investor’s cash dividend? a. PhP 16,000 b. PhP 12,500 c. PhP 16,500 d. PhP 15,000
Given the following information ZO12345 N 0 Net cash flow 500 0 500 0 500 0 a. Determine the equal cash flow A from 0 to 5 at an interest of 10% b. Determine the equal cash flow (from 1 to 5) when considering at interest of 10%