A Corporation's Operating Profit Margin Is Equal to

question 73

Multiple Choice

A corporation's operating profit margin is equal to

• A) net income divided by sales.
• B) EBIT divided by sales.
• C) EBIT divided by net income.
• D) sales divided by EBIT.

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Definitions:

Class A Spa

An upscale facility offering premium health and beauty treatments, differentiated by service, amenities, or exclusivity criteria.

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.

Capital Cost Allowance (CCA)

A form of tax depreciation that allows a business to deduct the cost of a depreciable property, such as buildings or equipment, over a number of years.

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.