Question
You are given the following information for Merrimack, Inc. Sales 240,000 Debt 100,000 Dividends 5,000 Equity 30,000 Interest rate 7% Net income 16,000 Tax rate
You are given the following information for Merrimack, Inc.
| Sales | 240,000 |
| Debt | 100,000 |
| Dividends | 5,000 |
| Equity | 30,000 |
| 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. (Hint: First prepare income statement working backwards from the bottom to find EBIT.) What is the companys basic earning power (BEP)?
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Banking On Freedom Black Women In U.S. Finance Before The New Deal
Authors: Shennette Garrett-Scott
1st Edition
0231183917, 978-0231183918
