basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects.

Name: basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects.
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The basic earning power ratio (BEP) measures a firm's ability to generate earnings from its assets before considering financial leverage and tax effects.

Basic Earning Power Ratio (BEP) Reflects the Earning Power of a Firm's