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A company's annual interest expense is $425,000, its net income is $1,440,000, its return on assets is 7.2% per year, and its tax rate is

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A company's annual interest expense is $425,000, its net income is $1,440,000, its return on assets is 7.2% per year, and its tax rate is 35%. What is the company's basic earnings power ratio? 1) 13.8% 2) 15.7% 3) 16.1% 4) 14.4% 5) 13.2%

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