Chambliss Corp

question 30

Multiple Choice

Chambliss Corp.'s total assets at the end of last year were $305,000 and its EBIT was 62,500.What was its basic earning power (BEP) ?

• A) 18.49%
• B) 19.47%
• C) 20.49%
• D) 21.52%
• E) 22.59%

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Definitions:

High Inflation

A situation of rapidly increasing prices in an economy, reducing purchasing power over time.

High Unemployment

refers to a situation where a substantially higher percentage of the workforce is not engaged in employment, suggesting economic distress.

Inflation

The swell in the general price range for goods and services, shrinking the buying power of consumers.

Deflation

A decrease in the general price level of goods and services, often accompanied by a reduction in the money supply and credit.