BEP, ROE, AND ROIC Duval Manufacturing recently reported the following information: Net income $ 600,000 ROA 8%

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BEP, ROE, AND ROIC Duval Manufacturing recently reported the following information:

Net income $ 600,000 ROA 8%

Interest expense $ 225,000 Accounts payable and accruals $1,000,000 Duval’s tax rate is 35%. Duval 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).

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