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Homework answers / question archive / BEP, ROE, AND ROIC Broward Manufacturing recently reported the following information: Net income $615,000 ROA 10% Interest expense $202,950 Accounts payable and accruals $950,000 Broward's tax rate is 30%
BEP, ROE, AND ROIC Broward Manufacturing recently reported the following information:
Net income $615,000 ROA 10% Interest expense $202,950 Accounts payable and accruals $950,000
Broward's tax rate is 30%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).
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