For the last fiscal year, your firm reported a return on assets $($ROA$)$ of $6\mathrm{.}0$ percent and a return on equity $($ROE$)$ of $15$ percent. This was on sales of $$36,000,000$ and total assets of $$30,000,000.$ Your CFO noted that the difference between the firm's basic earnings power $($BEP$)$ and its cost of debt $($interest rate on debt is $6\mathrm{.}8$ percent$)$ ampllfied ROE handsomely. Assuming a tax rate of $40$ percent, calculate your firm's basic earnings power.

$01372$

$0\mathrm{.}1408$

$0\mathrm{.}1384$

$0\mathrm{.}1360$

$0\mathrm{.}1396$