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

question 87

Multiple Choice

X-1 Corp's total assets at the end of last year were $365,000 and its EBIT was $52,500.What was its basic earning power (BEP) ratio?

• A) 14.10%
• B) 14.67%
• C) 17.40%
• D) 13.23%
• E) 14.38%

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Definitions:

Return

The profit or loss derived from an investment over a particular period, often expressed as a percentage of the investment's initial cost.

Inflation

The velocity of rise in the aggregate pricing of goods and services, reducing the power of the dollar.

Dividends

Regular payments declared by a company's board of directors and given to its shareholders from the company's earnings.