Exhibit 2Apex Climbing Gear has provided the following information for the most recent year. EBIT was...

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Exhibit 2Apex Climbing Gear has provided the followinginformation for the most recent year. EBIT was $596,850, taxes were$142,700, interest expense was $72,324, total assets are$1,835,200, gross profitwas $842,000, and total liabilities are$789,400.
17.Use Exhibit 2. What is the return on assets for Apex?(Expressas a percentage to the nearest hundredth)
18.Use Exhibit 2. What is the return on equity for Apex?(Expressas a percentage to the nearest hundredth)
Exhibit 3You are considering a stock investment in one of twofirms, More Debt, Inc. (MDI) and More Equity, Inc. (MEI), both ofwhich operate in the same industry and have identical operatingprofits of $1,200,000. MDI finances its $2.85 million in assetswith $2 million in debt (on which it pays 6.85 percent interestannually) and $0.85 million in equity. MEI finances its $2.85million in assets with no debt and $2.85 million in equity. Bothfirms pay a tax rate of 28 percent on their taxable income.
19.Use Exhibit 3.What is the resulting ROA for MDI? (Express asa percentage to the nearest hundredth)
20.Use Exhibit 3.What is the resultingROA for MEI? (Expressasapercentage to the nearest hundredth

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Exhibit 2Apex Climbing Gear has provided the followinginformation for the most recent year. EBIT was $596,850, taxes were$142,700, interest expense was $72,324, total assets are$1,835,200, gross profitwas $842,000, and total liabilities are$789,400.17.Use Exhibit 2. What is the return on assets for Apex?(Expressas a percentage to the nearest hundredth)18.Use Exhibit 2. What is the return on equity for Apex?(Expressas a percentage to the nearest hundredth)Exhibit 3You are considering a stock investment in one of twofirms, More Debt, Inc. (MDI) and More Equity, Inc. (MEI), both ofwhich operate in the same industry and have identical operatingprofits of $1,200,000. MDI finances its $2.85 million in assetswith $2 million in debt (on which it pays 6.85 percent interestannually) and $0.85 million in equity. MEI finances its $2.85million in assets with no debt and $2.85 million in equity. Bothfirms pay a tax rate of 28 percent on their taxable income.19.Use Exhibit 3.What is the resulting ROA for MDI? (Express asa percentage to the nearest hundredth)20.Use Exhibit 3.What is the resultingROA for MEI? (Expressasapercentage to the nearest hundredth