Duval Manufacturing recently reported the following information: Net income......................................$ 600,000 ROA.....................................................8% Interest expense................................$ 225,000 Accounts payable and

Question:

Duval Manufacturing recently reported the following information:

Net income......................................$ 600,000

ROA.....................................................8%

Interest expense................................$ 225,000

Accounts payable and accruals............$1,000,000

Duval's tax rate is 35%. Duval 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).