You are given the following information for Merrimack, Inc. Sales 240,000 Debt 80,000 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 company's basic earning power (BEP)? OA. 30.06% B. 27.76% OC 25.87% OD. 24.30% OE. 22.97% OF. 21.83% OG 20.84% OH. 19.97%