Kragle Corporation Reported the Following Financial Data for One of Its

question 21

Multiple Choice

Kragle Corporation reported the following financial data for one of its divisions for the year;average invested assets of $470,000;sales of $930,000;and income of $105,000.The investment center profit margin is:

• A)22.3%.
• B)50.5%.
• C)197.9%.
• D)447.6%.
• E)11.3%.

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Definitions:

Small Stock Dividends

Dividends paid by a company to its shareholders in the form of additional shares, typically representing less than 20-25% of the existing shares’ total value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Stated Value

A value assigned to no-par-value stock by the board of directors of a company, often used as the basis for accounting transactions.

Book Value Per Share

A measure that represents the equity value of a company per outstanding share, calculated by dividing the company's net assets by the number of shares outstanding.