Homework Answers
| Net profit = Sales * Net profit margin = 2940000 * 6% = | 176400 |
| EBT = Net profit / (1-tax%) = 176400/(1-25%) = | 235200 |
| Interest = 700000 * 7% = | 49000 |
| EBIT = EBT + Interest = 235200 + 49000 = | 284200 |
| TIE = EBIT / Interest = 284200 / 49000 = | 5.80 |
| Invested capital = Debt + Common stock = 700000 + 800000 = | 1500000 |
| ROIC = EBIT*(1-tax%)/ Invested capital = 284200*(1-25%)/1500000 = | 14.21% |
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