Answered

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x-1 corp's total assets at the end of last year were $460,000 and its ebit was $52,500. what was its basic earning power (bep) ratio? x-1 corp's total assets at the end of last year were $460,000 and its ebit was $52,500. what was its basic earning power (bep) ratio? 14.27% 9.24% 12.33% 11.07% 11.41%

Sagot :

For the conditions given above, it can be concluded to state that the Basic Earning Power, or the BEP ratio of the company will be 11.41 percent when it has total assets of $460,000 and its EBIT amount to a total of $52,500. Therefore, the option E holds true.

The computation of the Basic Earning Power of the company can be done using the generalized formula and the information given above, as below,

Basic Earning Power = EBIT / Total Assets

Basic Earning Power = 52500 / 460000

Basic Earning Power = 0.1141

Therefore, the BEP ratio of the company will be 11.41 percent.

Learn more about the BEP ratio here:

https://brainly.com/question/14285884

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