Herring Corporation has operating income of $235,000 and a 40% tax rate. The firm has short-term debt

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Herring Corporation has operating income of $235,000 and a 40% tax rate. The firm has short-term debt of $115,000, long-term debt of $321,000, and common equity of $436,000. What is its return on invested capital?

a. 17.42%

b. 16.17%

c. 14.92%

d. 15.50%

e. 18.27%

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt , Eugene F. Brigham

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Posted Date: Jan 06, 2021 08:41 AM

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Herring Corporation has operating income of $235,000 and a 40% tax rate. The firm has short-term debt

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Corporate Finance A Focused Approach

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