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Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?

Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 7P
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Help me answer problem 6 and 7 thank you
Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental· Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
Transcribed Image Text:Problem 6 (DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? Problem 7 (Basic Earning Power) Oriental· Manufacturing rècently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
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