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For the last fiscal year, your firm reported a return on assets (ROA) of 6.0 percent and a return on equity (ROE) of 15 percent.

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For the last fiscal year, your firm reported a return on assets (ROA) of 6.0 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 6.4 percent) amplified ROE handsomely. Assuming a tax rate of 40 percent calculate your firm's basic earnings power. Enter your answer in decimal format to 4-decimal places. For example, if your answer is 955%, enter 0.0955

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