Computing the return on invested capital

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Question: Broward Manufacturing recently reported the following information: Broward's tax rate is 40%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROTC). Round your answers to two decimal places.

Reference no: EM131949792

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