Question 3 Assume that your firm has a return on assets of 6.0%, sales of $36,000,000, total assets of $30,000,000, a return on equity of 15.0%, an interest rate on total debt of 8 percent, and a tax rate of 40 percent. Given this information, determine the firm's basic earnings power. (Hint: you may need to work an income statement backwards to get EBIT, in which case you will need to determine the firm's net income or profit, as well as its interest expense on total debt) O 13.20% O 14.80% O 14.00% O 14.40% O 13.60% 0.2 pts h

Assume that your firm has a return on assets of 6.0%, sales of $36,000,000, total assets of $30,000.000, a return on equity of 15.0%, an interest rate on total debt of 8 percent, and a tax rate of 40 percent. Given this information, determine the firm's basic earnings power. (Hint: you may need to work an income statement backwards to get EBIT, in which case you will need to determine the firm's net income or profit, as well as its interest expense on total debt) 13.20% 14.80% 14.00% 14.40% 13.60%