Answer:
profit margin = 23.33%
Explanation:
profit margin = net profit / net sales
- net profit = $2,800
- net sales = $12,000
profit margin = $2,800 / $12,000 = 0.233333 = 23.33%
The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.
The answer & explanation for this question is given in the attachment below.
High risk, high returns. The higher the risk of an investment, the higher the returns or losses.
Speculative stocks investment is a high risk investment. It offers the possibility of earning substantial returns to compensate for its high risk profile.
Retirement plans are investments made in preparation for retirement. These investments have minimal risks compared to speculative stocks.
Property investments are low in risk but it is still subject to risk.
A-rated bonds are bonds that are credible and are expected to give a return to investors.
Based on my understanding, the correct order of investment from the least risky to the most risky is:
1) property
2) A-rated bonds
3) retirement plans
4) Speculative stocks.
Answer: Option A
Explanation: The amount of cash disbursed by the company in a specified time period, generally a year, is called cash outflow. In simple words, cash outflow is the amount of cash that left the company in the form of investments, operating expenses or other payments etc.
Initial investment in a project is a cash outflow that will further result in cash inflows in form of returns.
Thus, option A is correct.
