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please help 4-2: The Duval Corporation has recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 AP and Accruals $1,000,000 The
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4-2: The Duval Corporation has recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 AP and Accruals $1,000,000 The company finances with only debt and common equity, where 40% of its capital comes from debt, while 60% comes from common equity. The applicable corporate tax rate is 35%. Calculate the firm's basic earning power (BEP) ratio and return on equity (ROE)Step by Step Solution
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