Question: Broward Manufacturing recently reoirted the following information
Net income is $615,000
ROA is 10%
Interest expense $202,950
Accounts payable and accruals $950,000
Broward's tax rate is 30% Broward's finances with only debt and common equity so it has no preferred stock 40% of its total invested capital is debt and 60% of its total invested capital is common equity. Calulate its basic earning power (BEP), its return on equity (ROE) and its return on invested capital (ROIC).