What is the companys basic earning power-equity multiplier

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Reference no: EM13907544

Sales $200,000

Debt 95,000

Dividends 5,000

Equity 40,000

Interest Rate 7%

Net income 16,000

Tax Rate 30%

What is the company’s EBIT?

What is the Company's ROIC?

What is the company's basic earning power?

What is the company's equity multiplier?

What is the company's sustainable growth rate assuming that debt rations do not change?

How much additional debt will the company require to keep the current debtequity ratio constant if the company were to grow at the sustainable growth rate?

At what growth rate could the Lowell Inc. grow if it did not wish to increase the amount of debt?

Assume the company has no short term debt, all asset turnover, profit margin, dividend payout ratios remain constant

Reference no: EM13907544

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