________ Measures the Percentage of Profit Earned on Each Sales

question 193

Multiple Choice

________ measures the percentage of profit earned on each sales dollar before interest and taxes but after all costs and expenses.

• A) Net profit margin
• B) Operating profit margin
• C) Gross profit margin
• D) Earnings available to common shareholders

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Definitions:

Cash Dividend

A payment made by a corporation out of its earnings to shareholders, usually in the form of cash.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Paid-In Capital

Paid-In Capital is the amount of money investors have paid to a company in exchange for shares of its stock, reflecting the additional capital contributed by shareholders over the par value of the shares.