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What is basic earnings power ratio

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Question 1: Oriental Manufacturing recently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?

Reference no: EM132908998

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What is basic earnings power ratio : Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
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