Multiple Choice
Aaron Aviation recently reported the following information: Net income = $500,000
ROA = 10%
Interest expense = $200,000
The company's average tax rate is 40%. What is the company's basic earning power (BEP) ?
A) 14.12%
B) 16.67%
C) 17.33%
D) 20.67%
E) 22.50%
Correct Answer:
Verified
Correct Answer:
Verified
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