Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) Earnings before interest and taxes Debt (at 7% interest) Atlantic Corporation Pacific Corporation $ 470 $ 470 $ 300 $ 1,570 $ 990 $ 370 Equity a. Calculate each company's ROE, ROA, and ROIC. Note: Round your answers to 1 decimal place. Atlantic Corporation Pacific Corporation ROE % % ROA % % ROIC % % B

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 32BEB
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Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) \table[[,\table[[Atlantic],[Corporation]],Pacific],[Earnings before interest and taxes,$470,$470
 
Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the
companies have no other liabilities other than the debt shown. (All dollars are in millions.)
Earnings before interest and taxes
Debt (at 7% interest)
Atlantic
Corporation
Pacific
Corporation
$ 470
$ 470
$ 300
$ 1,570
$ 990
$ 370
Equity
a. Calculate each company's ROE, ROA, and ROIC.
Note: Round your answers to 1 decimal place.
Atlantic Corporation Pacific Corporation
ROE
%
%
ROA
%
%
ROIC
%
%
B
Transcribed Image Text:Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) Earnings before interest and taxes Debt (at 7% interest) Atlantic Corporation Pacific Corporation $ 470 $ 470 $ 300 $ 1,570 $ 990 $ 370 Equity a. Calculate each company's ROE, ROA, and ROIC. Note: Round your answers to 1 decimal place. Atlantic Corporation Pacific Corporation ROE % % ROA % % ROIC % % B
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