Duvals tax rate is 35 duval finances with only debt and


BEP, ROE, and ROIC

Duval Manufacturing recently reported the following information

Net income

$655,000

ROA

7%

Interest expense

$262,000

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, 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) Round your answers to two decimal places.

BEP

 %

ROE

 %

ROIC

%

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Operation Management: Duvals tax rate is 35 duval finances with only debt and
Reference No:- TGS01610477

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