Question: answer the question on the information in the table. the tax rate is 40 percent l By 25 percent, it will hurt performance. How wonld
l By 25 percent, it will hurt performance. How wonld you respond? 7. Answer the questions below based on the inforimation in the table. The x rate is 40 percent and all dollars are in millions. For simplicity e that the companies have no other liabilities other than the deb shown below. Atlantic Corp.Pacific Corp. Earnings before interest and taxes Debt (at 8% interest) Equity $450 $290 S910 S 470 $1,490 s 370 a. Calculate each company's ROE, ROA, and ROIC b. Why is Pacific's ROE so much higher than Atlantic's? Does this mean Pacific is a better company? Why or why not? C. u about the two companies? yo d. How do the two companies' ROICs compare? What does this suggest about the two companies? 8. Table 3.1 in Chapter 3 presents financial statements over the period 2011 through 2014 for R&E Supplies, Inc. a. Use these statements to calculate as many of the ratios in Table 2.2 as you can. Page 90 465
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