Broward Manufacturing recently reported the following information:

Broward’s tax rate is 25%. 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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Net income ROA Interest expense Accounts payable and accruals $615,000 10% $202,950 $950,000