Question: 17. Calculate ROE, ROA, ROI, ROIC. (16 (4 each) points) SHOW ALL WORK To calculate the ROE, ROA, ROI, and ROIC, you first need to
17. Calculate ROE, ROA, ROI, ROIC. (16 (4 each) points) SHOW ALL WORK
To calculate the ROE, ROA, ROI, and ROIC, you first need to complete the balance sheet and income statement for each firm presented below.
We will look at the income statement under three different conditions: Good, Expected and Bad.
Firm A B/S (000s)
Assets Liabilities & Owners Equity Current Assets $ 50 Debt $
Fixed Assets $ Equity $100 Total Assets $100 Total L & OE $100
Firm U I/S (000s)
Business Condition
Good Expected Bad
Revenue $150 $100 $75 Oper Costs Fixed
Variable 60 40 30
Total Oper Costs 105 85 75
Operating Income (EBIT) Interest (i = 10%)
Earnings before taxes (EBT)
Taxes (t = 35%) Net Income (NI) $ $
17. Calculate ROE, ROA, ROI, ROIC. (16 (4 each) points) SHOW ALL WORK
To calculate the ROE, ROA, ROI, and ROIC, you first need to complete the balance sheet and income statement for each firm presented below.
We will look at the income statement under three different conditions: Good, Expected and Bad.
Firm A B/S (000s)
Assets Liabilities & Owners Equity Current Assets $ 50 Debt $
Fixed Assets $ Equity $100 Total Assets $100 Total L & OE $100
Firm U I/S (000s)
Business Condition
Good Expected Bad
Revenue $150 $100 $75 Oper Costs Fixed
Variable 60 40 30
Total Oper Costs 105 85 75
Operating Income (EBIT) Interest (i = 10%)
Earnings before taxes (EBT)
Taxes (t = 35%) Net Income (NI) $ $
17. Calculate ROE, ROA, ROI, ROIC. (16 (4 each) points) SHOW ALL WORK
To calculate the ROE, ROA, ROI, and ROIC, you first need to complete the balance sheet and income statement for each firm presented below.
We will look at the income statement under three different conditions: Good, Expected and Bad.
Firm A B/S (000s)
Assets Liabilities & Owners Equity Current Assets $ 50 Debt $
Fixed Assets $ Equity $100 Total Assets $100 Total L & OE $100
Firm U I/S (000s)
Business Condition
Good Expected Bad
Revenue $150 $100 $75 Oper Costs Fixed
Variable 60 40 30
Total Oper Costs 105 85 75
Operating Income (EBIT) Interest (i = 10%)
Earnings before taxes (EBT)
Taxes (t = 35%) Net Income (NI) $ $
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