If the Debt Ratio Is 50 Percent, the Interest Rate

question 71

Multiple Choice

If the debt ratio is 50 percent, the interest rate on all debt is 8 percent, the tax rate is 50 percent, and the return on equity is 10 percent, then the ratio of earnings before interest and taxes (EBIT) to total assets, or the basic earning power ratio, must be

• A)10%.
• B)14%.
• C)12%.
• D)8%.
• E)16%.

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Definitions:

Stratum Corneum

The outermost layer of the skin, consisting of dead cells that provide a barrier to protect underlying tissue.

Stratum Granulosum

A layer of the epidermis found beneath the stratum lucidum and above the stratum spinosum, characterized by granular appearing cells.

Epidermis

The outermost layer of the skin, which acts as a barrier to protect against environmental elements, pathogens, and water loss.

TBSA

Total Body Surface Area, a measurement indicating the percentage of skin affected by burns or other skin injuries.