17. Calculate ROE, ROA, ROI, ROIC. (16 (4 each) points)
SHOW ALL WORK
To calculate the ROE, ROA, ROI, and ROIC, you first need to complete the balance
sheet and income statement for each firm presented below.
We will look at the income statement under three different conditions: Good, Expected
and Bad.
Firm A B/S (000's)
Assets
Liabilities & Owner's Equity
Current Assets
$ 50
Debt
$
Fixed Assets
$
Equity
$100
Total Assets
$100
Total L & OE $100
Firm U I/S (000's)
Good
Business Condition
Expected
Bad
Revenue
$150
$100
$75
Oper Costs Fixed
Variable
60
40
30
Total Oper Costs
105
85
75
Operating Income (EBIT)
Interest (i = 10%)
Farnings hafora tavas (ERT)