Q Corp Has a Basic Earnings Power (BEP) Ratio of 15

question 6

Multiple Choice

Q Corp. has a basic earnings power (BEP) ratio of 15 percent, and has a times interest earned (TIE) ratio of 6. Total assets are $100,000. The corporate tax rate is 40 percent. What is Q Corp.'s return on assets (ROA) ?

• A) 7.5%
• B) 10.0%
• C) 12.2%
• D) 13.1%
• E) 14.5%

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West-Coast Subscribers

Individuals or entities located on the West Coast who subscribe to a particular service, publication, or product.

National Magazine

A publication that targets a nationwide audience, often covering a wide array of topics of general interest.

Stratified Sampling

A method of sampling from a population in which the population is divided into subgroups, and samples are taken from each subgroup independently.

Representative Sampling

The process of selecting a sample that closely matches the overall population in terms of key characteristics.