Waldale Pools Has Total Equity of $289,100 and Net Income

question 98

Multiple Choice

Waldale Pools has total equity of $289,100 and net income of $64,500.The debt-equity ratio is 0.55 and the total asset turnover is 1.6.What is the profit margin?

• A)3.10 percent
• B)5.23 percent
• C)5.67 percent
• D)9.00 percent
• E)22.31 percent

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Definitions:

Market Structures

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Oligopolistic Industry

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent pricing and marketing strategies.

Collude Effectively

To engage in a secret agreement or cooperation among parties, often competitors, for a deceitful or illegal purpose, such as fixing prices or rigging markets.

Pure Monopoly

describes a market structure where a single company has exclusive control over the supply of a product or service, with no close substitutes.