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Use the following information for the next three questions. P&G Company has $12 million of sales and $1.2 million of net income. Its total assets
Use the following information for the next three questions. P&G Company has $12 million of sales and $1.2 million of net income. Its total assets are $8 million. The company's total assets equal total invested capital, and its capital consists of 45% debt and 55% common equity. The firm's interest rate is 10% and its tax rate is 40%. Question 7 (3.33 points) What is P&G Company's return on equity (ROE)? 27.27% 33.33% 45.45% 15.00% Question 8 (3.33 points) What is P&G Company's return on invested capital (ROIC)? 17.70% 19.50% 27.50% 29.50% Question 9 (3.33 points) What is P&G Company's basic earning power (BEP)? 26.13% 30.50% 29.50% 27.50%
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