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16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 9% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: * a) 8.00% O b) 12.05% c) 15.74% d) 15.89% e) None of the above

16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 9% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: * a) 8.00% O b) 12.05% c) 15.74% d) 15.89% e) None of the above

Essentials Of Investments
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
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16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 9% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: a) 8.00% b) 12.05% c) 15.74% O d) 15.89% e) None of the above
Transcribed Image Text:16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has ROA of 9% and it falls in the 30% tax bracket. The Basic earning power (BEP) of the company is: a) 8.00% b) 12.05% c) 15.74% O d) 15.89% e) None of the above
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