Determine the firm net income or profit

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Reference no: EM133655514

Question

Assume that your firm has a return on assets of 14.7%, sales of $16,625,000, total assets of $4,750,000, a return on equity of 36.75%, an interest rate on total debt of 10 percent, and a tax rate of 40 percent. Given this information, determine the firm's basic earnings power. (Hint: you may need to work an income statement backwards to get EBIT, in which case you will need to determine the firm's net income or profit, as well as its interest expense on total debt.

Reference no: EM133655514

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