Answered: X-1 Corp's total assets at the end of…

X-1 Corp's total assets at the end of last year were $495,000 and its EBIT was $52,500. What was its basic earning power (BEP) ratio? O a. 7.95% O b. 9.59% c. 5.30% d. 14.14% O O e. 10.61%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

X-1 Corp's total assets at the end of last year were $495,000 and its EBIT was $52,500. What was its basic earning power (BEP) ratio?

- a. 7.95%
- b. 9.59%
- c. 5.30%
- d. 14.14%
- e. 10.61%

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