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

answer the question on the information in the table. the tax rate is 40 percent
 answer the question on the information in the table. the tax

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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