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).