X-1 Corp's Total Assets at the End of Last Year

question 85

Multiple Choice

X-1 Corp's total assets at the end of last year were $405,000 and its EBIT was 52,500.What was its basic earning power (BEP) ratio?

• A)11.70%
• B)12.31%
• C)12.96%
• D)13.61%
• E)14.29%

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Definitions:

Ten Years

This term refers to a period or duration of ten consecutive years.

Index Number

A numerical indicator that reveals variations in a single variable or a collection of variables across a period.

Sales Increased

An upward trend in the quantity or volume of goods or services sold by a business within a particular time frame.

CPI Increased

A rise in the Consumer Price Index, indicating a general increase in the prices of consumer goods and services.