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

question 129

Multiple Choice

X-1 Corp's total assets at the end of last year were $395,000 and its EBIT was $52,500.What was its basic earning power (BEP) ratio?

• A) 11.30%
• B) 15.55%
• C) 11.70%
• D) 16.35%
• E) 13.29%

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Definitions:

Differentiate

The act of distinguishing or distinguishing between two or more things, often used in mathematics to describe the process of finding a derivative.

Affiliate

To officially attach or connect to an organization or a body.

Identification

The process of associating oneself with specific groups, roles, or causes, or recognizing something as being certain or belonging to a particular category.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or culture.