$82,000
The above data is for Richard's Bait Shop. During 2019, Richard's net income was $28,000 and $3,200 in dividends were declared. The firm did not hold any TreasuryStock in 2018 but didpurchase Treasury Stock in 2019. No new common stock shares were issued in 2019. Using the data abovecalculate the amount of Treasury Stock purchased in 2019.
Question 2:
Rex-All Movie Productions Inc. produces moviesfeaturing alien actionheroes. The firm has a tax rate of 30% (Federal and State combined), an EBIT of $650,000, net working capital of $95,000, fixed assets of $1,620,000, and current liabilities of $320,000, no long term liabilities, and a cost of capital of 5.37%. With no long-term debt the firm had no interest expense for the year. What is the firm's ROIC? NOTE: This may be the first time you've seen ROIC or Return on Invested Capital. No worries, use the simplified formula: ROIC = Net Income/(Total Long Term Debt + Total Equity)
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