A Firm's Net Profit Margin When Ignoring the Effects of Financing

question 41

Multiple Choice

A firm's net profit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million.How much did the firm pay in taxes?

• A)$600,000
• B)$500,000
• C)$400,000
• D)$300,000

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Definitions:

Probability

The measure of the likelihood that a given event will occur, often expressed as a number between 0 and 1.

Uniform Density

Describes a distribution where all outcomes are equally likely, or objects are evenly distributed across a specific area or volume.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Poisson Approximation

A statistical technique used to approximate the probability of a given number of events happening in a fixed interval of time.