Chambliss Corp.'s total assets at the end of last year were $305,000 and its EBIT was 62,500.What was its basic earning power (BEP)?
A) 18.49%
B) 19.47%
C) 20.49%
D) 21.52%
E) 22.59%

Name: Chambliss Corp.'s total assets at the end of last year were $305,000 and its EBIT was 62,500.What was its basic earning power (BEP)? A) 18.49% B) 19.47% C) 20.49% D) 21.52% E) 22.59%
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Question

Quizplus · Accepted Answer

BEP = EBIT/Total Assets
BEP = $62,500/$305,000 = 0.2049 or 20.49%