Basic earning power ratio


MiniVanLuv, a maker of minivans, has the following financial information. Net income of $3.60 million, ROA of 10%, and interest expense of $1.00 million. Its tax rate is 40%. What is its basic earning power (BEP) ratio? Give your answer as a number significant to 2 decimal places.

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Finance Basics: Basic earning power ratio
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