Dean Corporation Reported Net Income $58000 Net Sales $500000 and Average

question 154

Multiple Choice

Dean Corporation reported net income $58000 net sales $500000 and average assets $800000 for 2017. The 2017 profit margin was:

• A) 5.8%.
• B) 11.6%.
• C) 62.5%.
• D) 160%.

---

Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by summing all expected future cash flows, discounted back to their present value.

Discount Rate

The discount rate that is employed to ascertain the present worth of future cash streams in a discounted cash flow assessment.

MBA Programs

Masters of Business Administration programs, advanced degrees focusing on business management, leadership, and specialized areas of study.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.