X-1 Corp's total assets at the end of last year were $405,000 and its EBIT was 52,500.What was its basic earning power (BEP)ratio?
A)11.70%
B)12.31%
C)12.96%
D)13.61%
E)14.29%

Question

Quizplus · Accepted Answer

The basic earning power (BEP) ratio formula is EBIT / Total assets. 
Substituting the given values in the formula gives us BEP = 52,500 / 405,000 = 0.1296 or 12.96%. 
Therefore, the best choice is C.

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