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Ilya [14]
3 years ago
13

Herring Corporation has operating income of $265,000 and a 25% tax rate. The firm has short-term debt of $110,000, long-term deb

t of $349,000, and common equity of $459,000. What is its return on invested capital?
Business
1 answer:
MAVERICK [17]3 years ago
3 0

Answer:

21 %

Explanation:

Return on invested capital is one of the profitability ratios.  It measures the returns investors get from their capital investments. ROIC shows efficiency in the use of capital.

the formula is as follows

ROI =( Net income - Dividends ) / ( Debt + Equity )

in this case:

Income = 265,000

debts 110,000 + 349,000= 459,000

equity = 459,000

Net income = 265,000 -(25% x 265,000)

265,000- 66,250= 198,750

ROIC = 198,750/459,000+459,000

=198,000/918,000 x 100

=21 %

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allochka39001 [22]

Answer:

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Explanation:

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Therefore, the following journal entries to record the transaction.

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3 years ago
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3 years ago
A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to r
Mashutka [201]

Answer:

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Explanation:

The computation of the expected return on the portfolio is shown below:

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Which of the following is a PRE-READING activity designed to help build reading comprehension
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Answer:

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