The firm finances with only debt and common equity so it


Baker Industries’ net income is $25,000, its interest expense is $6,000, and its tax rate is 35%. Its notes payable equals $27,000, long-term debt equals $75,000, and common equity equals $240,000. 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

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Financial Management: The firm finances with only debt and common equity so it
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