Question

Lacone  Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and...

Lacone  Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Jonson finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%. What are Jonson ROE and ROIC? Do not round your intermediate calculations.

show all work

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Duffert Industries has total assets of $1,000,000 and total current liabilities (consisting only of accounts payable...
Duffert Industries has total assets of $1,000,000 and total current liabilities (consisting only of accounts payable and accruals) of $145,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 7% and its tax rate is 40%. The firm's basic earning power ratio is 16% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations. a. 10.34%; 9.88% b. 12.57%; 10.22% c. 14.48%; 10.89% d....
Steve Enterprise's total assets are $1,000,000 and its total current liabilities (consisting only of accounts payable...
Steve Enterprise's total assets are $1,000,000 and its total current liabilities (consisting only of accounts payable and accruals) are $200,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 7% and its tax rate is 40%. The firm's basic earning power ratio is 16% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC?  Do not round your intermediate calculations. a. 12.57%; 10.22% b. 15.91%; 11.23% c. 14.48%; 10.89% d. 10.34%;...
Broward Manufacturing recently reported the following information: Net income $570,000 ROA 9% Interest expense $199,500 Accounts...
Broward Manufacturing recently reported the following information: Net income $570,000 ROA 9% Interest expense $199,500 Accounts payable and accruals $1,050,000 Broward's tax rate is 35%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Round your answers to two...
eBook Problem Walk-Through Broward Manufacturing recently reported the following information: Net income $693,000 ROA 8% Interest...
eBook Problem Walk-Through Broward Manufacturing recently reported the following information: Net income $693,000 ROA 8% Interest expense $270,270 Accounts payable and accruals $1,050,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not...
Broward Manufacturing recently reported the following information: Net income $760,000 ROA 12% Interest expense $250,800 Accounts...
Broward Manufacturing recently reported the following information: Net income $760,000 ROA 12% Interest expense $250,800 Accounts payable and accruals $950,000 Broward's tax rate is 40%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations....
Broward Manufacturing recently reported the following information: Net income $417,000 ROA 8% Interest expense $133,440 Accounts...
Broward Manufacturing recently reported the following information: Net income $417,000 ROA 8% Interest expense $133,440 Accounts payable and accruals $1,000,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations....
BEP, ROE, AND ROIC Broward Manufacturing recently reported the following information: Net income $615,000 ROA 10%...
BEP, ROE, AND ROIC Broward Manufacturing recently reported the following information: Net income $615,000 ROA 10% Interest expense $202,950 Accounts payable and accruals $950,000 Broward’s tax rate is 30%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).
Broward Manufacturing recently reported the following information: Net income $738,000 ROA 8% Interest expense $228,780 Accounts...
Broward Manufacturing recently reported the following information: Net income $738,000 ROA 8% Interest expense $228,780 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations....
Broward Manufacturing recently reported the following information: Net income $785,000 ROA 10% Interest expense $251,200 Accounts...
Broward Manufacturing recently reported the following information: Net income $785,000 ROA 10% Interest expense $251,200 Accounts payable and accruals $1,000,000 Broward's tax rate is 30%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations....
4-9. BEP, ROE, AND ROIC – Duval Manufacturing recently reported the following information:   Net Income   $600,000...
4-9. BEP, ROE, AND ROIC – Duval Manufacturing recently reported the following information:   Net Income   $600,000 ROA 8% Interest expense $225,000 Accounts payable and accruals   $1,000,000 Duvanl’s tax rate is 35%. Duval finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT