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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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net income 24K
Interest expense 5,000
Tax rate 25%
Notes payable 27K
Long-term debt 75K.
Common equity 250K
The firm finances with only debt and common equity, so it has no
ROE = net income / common equity
ROIC (
ROE = 24,000 / 250,000
ROE = .096
EBIT= sales revenue - operating costs
Is my ROE right?
I do not know how to find the EBIT with the information provided. Please help, thank you!
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