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

question 44

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) $50,000
• B) $300,000
• C) $350,000
• D) $500,000

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Definitions:

Affective

Relating to moods, feelings, and attitudes; it denotes the emotional aspect of consciousness.

Behavioral

Pertaining to the actions or reactions of a person or animal in response to external or internal stimuli.

Stereotypes

Oversimplified generalizations about groups of people that often underlie prejudice and discrimination.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.