Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help me answer problem 6 and 7 thank you
![Problem 6 (DuPont and Net Income)
Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets
turnover is 3.2 x. The company is 50% equity financed, and it has no preferred
stock outstanding. What is its net income?
Problem 7 (Basic Earning Power)
Oriental· Manufacturing rècently reported the following information: Net income
is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental
Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc57eac9-a1b7-4fdb-8f20-c9b533c3d116%2Ff471284b-0000-48ad-8df7-a1629aaf63c9%2Fokgd1hj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 6 (DuPont and Net Income)
Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets
turnover is 3.2 x. The company is 50% equity financed, and it has no preferred
stock outstanding. What is its net income?
Problem 7 (Basic Earning Power)
Oriental· Manufacturing rècently reported the following information: Net income
is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental
Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
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