16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 8% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: * a) 8.00% b) 12.05% O c) 13.98% d) 15.89% e) None of the above 000 What
16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 8% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: * a) 8.00% b) 12.05% O c) 13.98% d) 15.89% e) None of the above 000 What
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![16. LSP Manufacturing recently reported Net income of $350,000, Interest
expense $112,000. It has ROA of 8% and it falls in the 30% tax bracket. The
Basic earning power (BEP) of the company is: *
O a) 8.00%
O b) 12.05%
O c) 13.98%
d) 15.89%
e) None of the above
17. Zoom has a DSO of 30 days, and its annual sales are $6,500,000. What
is its accounts receivable balance? Assume that it uses 365-day year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44fc33fa-f0a7-4f0d-8fd2-501707f936b1%2F3578f3b6-6518-4e2e-bf91-0a0e03483efb%2F0jby9qb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:16. LSP Manufacturing recently reported Net income of $350,000, Interest
expense $112,000. It has ROA of 8% and it falls in the 30% tax bracket. The
Basic earning power (BEP) of the company is: *
O a) 8.00%
O b) 12.05%
O c) 13.98%
d) 15.89%
e) None of the above
17. Zoom has a DSO of 30 days, and its annual sales are $6,500,000. What
is its accounts receivable balance? Assume that it uses 365-day year.
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