ROE and ROIC Baker Industries’

net income is $27000, its interest expense is $4000, and its tax rate is 40%. Its notes payable equals $23000, long-term debt equals $70000, and common equity equals $260000. The firm finances with only debt and common equity, so it has no preferred stock.

What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.

ROE:

ROIC:

Answer rating: 100% (QA)

Invested capital Notes payable Long term Debt Common stock Invested capital 23000 70000 2600... View the full answer