Question: V Answer the questions below based on the following information, taxes are 35% and all dollars are in million. (#204) Company X Company Y EBIT
V Answer the questions below based on the following information, taxes are 35% and all dollars are in million. (#204) Company X Company Y EBIT 400 400 Debt(at 10% interest) 1200 200 Equity 300 1300 1. What is the ROE,ROA,ROIC equation? 2. Calculate each company's ROE,ROA,ROIC. | :1; 2,, ,3 (3) 3. Which company has a higher ROA? Dose this mean it is a better company? Why or why not? 4. How do the two companies' ROICs compare? What does this suggest about the two companies
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