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Orlov [11]
3 years ago
15

You have just reviewed the financial statements of Penelope's Candy Store (PCS). You have determined that PCS has a Profit Margi

n of 19%. How do you explain this to owner Penelope Hassey?
Business
1 answer:
Contact [7]3 years ago
3 0

Answer and Explanation:

Penelope Hassey has to assume that the total sale of the firm is $100 and given that the Profit Margin ratio is 19%.

The scenario shows that on every $100 of sale company get a net profit margin of $19

Note :

Profit margin = Net sales × Profit margin ration

Profit margin = $100 × 19%

Profit margin = $19

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7nadin3 [17]
  1. Identify the cultural differences between Greece and Switzerland as per the GLOBE project

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3 0
3 years ago
Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the n
Aloiza [94]

Answer:

60

Explanation:

price-earnings ratio = price / earnings per share

earnings per share = net income / shares outstanding = $150 / 300 = $0.50

$30 / $0.50 = 60

3 0
3 years ago
What term describes the relationship between real gdp per hour worked and capital per hour​ worked, holding the level of technol
Alecsey [184]

The per-worker production function describes the relationship between real gdp per hour worked and capital per hour​ worked, holding the level of technology​ constant

3 0
3 years ago
Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the
Aleks [24]

Answer:

14.925%

Explanation:

Cost of equity = Unlevered Cost of Equity + (Unlevered Cost of Equity - Cost of debt)*Debt to value ratio / (1-debt to value ratio)*(1-Tax rate)

Cost of equity = 12% + (12%-9%)*0.6/(1 - 0.6)*(1 - 35%)

Cost of equity = 0.12 + 0.018/0.4*0.65

Cost of equity = 0.12 + 0.02925

Cost of equity = 0.14925

Cost of equity = 14.925%

So, Alabaster's cost of equity will be 14.925%.

4 0
3 years ago
Hot Shot Delivery Inc. provides the following year end data:
damaskus [11]

Answer:

c. 42.6%

Explanation:

Average total assets = $410,000+$257,000/2

Average total assets = $667,000

Average total assets = $333,500

Net income = $112,000

Interest expenses = $30,000

Return on total assets = Net income + Interest expenses / Average total assets

Return on total assets = $112,000 + $30,000 / $333,500

Return on total assets = 0.42388060

Return on total assets = 42.39%

4 0
3 years ago
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