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Use the following information for the Lowell, Inc. for this and the next seven questions. Sales $ 2 0 0 , 0 0 0 Debt

Use the following information for the Lowell, Inc. for this and the next seven questions.
Sales $200,000
Debt 95,000
Dividends 5,000
Equity 40,000
Interest rate 7%
Net income 16,000
Tax rate 30%
Assume the company has no short-term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant. What is the companys basic earning power (BEP)? What is the companys equity multiplier? What will be the new total debt ratio for Lowell Inc. at the end of the next year if it grew at the internal growth rate?

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