eBook Problem Walk$-$Through

Broward Manufacturing recently reported the following information:

Net income $$288,000$

ROA $10\%$

Interest expense $$106,560$

Accounts payable and accruals $$950,000$

Broward's tax rate is $25\%.$ Broward finances with only debt and common equity, so it has no preferred stock. $40\%$ of its total invested capital is debt, and $60\%$ 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$).$ Do not round intermediate calculations. Round your answers to two decimal places.

BEP: $\%$

ROE: $\%$

ROIC: $\%$