Baker Industries’ net income is $25000, its interest expense is $6000, and its tax rate is 45%. Its notes payable equals
Posted: Fri Jul 01, 2022 8:29 am
Baker Industries’ net income is $25000, its interest expense is$6000, and its tax rate is 45%. Its notes payable equals $25000,long-term debt equals $75000, and common equity equals $255000. Thefirm finances with only debt and common equity, so it has nopreferred stock. The data has been collected in the Microsoft ExcelOnline file below. Open the spreadsheet and perform the requiredanalysis to answer the questions below.
1 2 A ROE and ROIC 3 Net income 4 Interest expense 5 Tax rate 6 Notes payable 7 8 9 10 ROE 11 12 Partial Income Statement: 13 EBIT 14 Interest 15 EBT 16 Taxes Long-term debt Common equity 17 18 19 Capital Summary: 20 Notes payable Net income 21 Long-term debt 22 Common equity 23 24 25 ROIC Total invested capital B $25,000 $6,000 45.00% $25,000 $75,000 $255,000 $6,000.00 $25,000.00 $25,000.00 $75,000.00 $255,000.00 C D Formulas #N/A #N/A #N/A #N/A #N/A #N/A
- Baker Industries Net Income Is 25000 Its Interest Expense Is 6000 And Its Tax Rate Is 45 Its Notes Payable Equals 1 (146.77 KiB) Viewed 27 times