FIN 331 - Broward Manufacturing recently reported the following information
Question # 00478332
Posted By:
Updated on: 02/06/2017 04:08 AM Due on: 02/06/2017
Broward Manufacturing recently reported the following information:
| Net income | $290,000 |
| ROA | 12% |
| Interest expense | $113,100 |
| Accounts payable and accruals | $1,000,000 |
Broward's tax rate is 40%. Broward 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).
-
Rating:
/5
Solution: FIN 331 - Broward Manufacturing recently reported the following information