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Question 56 1 pts X-1 Corps total assets at the end of last year were $490,000 and its EBIT was 52,500. What was its basic earning power (BEP) ratio? 0 13.07% 0 10.29% 0 11.57% 0 12.86% 10.71% Previous Next F4 FS F6 F7 F8 F9
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Answer #1

10.71%

Basic earning power (BEP) ratio calculated by dividing earnings before interest and taxes (EBIT) by total assets.

BEP ratio= 52500/490,000= 0.1071

Therefore BEP ratio is 10.71%

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