BEP, ROE, and ROIC

Duval Manufacturing recently reported the following information

Net income	$625,000
ROA	7%
Interest expense	$212,500
Accounts payable and accruals	$1,050,000

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) Round your answers to two decimal places.

BEP	%
ROE	%
ROIC	%

M/B and Share Price

You are given the following information: Stockholders' equity = $2.5 billion, price/earnings ratio = 17, common shares outstanding = 38 million, and market/book ratio = 1.9. Calculate the price of a share of the company's common stock. Round your answer to the nearest cent.

$

Ratio Calculations

Assume the following relationships for the Brauer Corp.:

Sales/total assets	2.1x
Return on assets (ROA)	5%
Return on equity (ROE)	9%

Calculate Brauer's profit margin assuming the firm uses only debt and common equity. Round your answer to two decimal places. %

Calculate Brauer's debt-to-assets ratio assuming the firm uses only debt and common equity. Round your answer to two decimal places. %