Calculate basic earning power

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Reference no: EM131195197

BEP, ROE, AND ROIC Duval Manufacturing recently reported the following information:

Net income $ 600,000

ROA 8%

Interest expense 5 225,000

Accounts payable and accruals 51,000,000

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, while 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).

Reference no: EM131195197

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