Duval Manufacturing recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 Duvals tax

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Duval Manufacturing recently reported the following information:

Net income $600,000

ROA 8%

Interest expense $225,000

Duval’s tax rate is 35%. What is its basic earning power (BEP)?

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 09:47 AM

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Duval Manufacturing recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 Duvals tax

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ROA 8 net income 600000 TA To calculate BEP we still need EBIT To calcu...View the full answer

Fundamentals of Financial Management

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