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    Fundamentals of Financial Management Study Set 1
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    Exam 4: Analysis of Financial Statements
  5. Question
    The Advantage of the Basic Earning Power Ratio (BEP)over the Return
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The Advantage of the Basic Earning Power Ratio (BEP)over the Return

Question 3

Question 3

True/False

The advantage of the basic earning power ratio (BEP)over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes.

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