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You are given the following information Sales240,000 Debt130,000 Dividends5,000 Equity30,000 Interest rate7% Net income16,000T ax rate30% Assume the company has no short-term debt. Also assume

You are given the following information

Sales240,000

Debt130,000

Dividends5,000

Equity30,000

Interest rate7%

Net income16,000T

ax rate30%

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 company's basic earning power (BEP)?

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