Use the information below provided by Angel Baby Angel Company: Sales     8,250,000.00 Operating costs     4,725,000.00 Operating income     3,525,000.00 Interest expense     1,750,000.00 Earnings before taxes     1,775,000.00 Taxes (40%)        621,250.00 Net income     1,153,750.00             WACC = 8%, Total invested capital 24,875,000.   Question 1.) What is its TIE ratio? Use 4 decimal places in your final answer. 2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage 3.) Calculate the EVA. (2 decimal places)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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Question

Use the information below provided by Angel Baby Angel Company:

Sales

    8,250,000.00

Operating costs

    4,725,000.00

Operating income

    3,525,000.00

Interest expense

    1,750,000.00

Earnings before taxes

    1,775,000.00

Taxes (40%)

       621,250.00

Net income

    1,153,750.00

           

WACC = 8%, Total invested capital 24,875,000.

 

Question

1.) What is its TIE ratio? Use 4 decimal places in your final answer.

2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage
3.) Calculate the EVA. (2 decimal places)
 
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