Which of the Following Is the Correct Formula for Calculating

question 152

Multiple Choice

Which of the following is the correct formula for calculating gross profit percentage?

• A) Net profit / Net sales revenue
• B) Gross profit / Net sales revenue
• C) Net sales revenue / Net profit
• D) Net sales revenue / Gross profit

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Definitions:

Market Price

The live market price at which an asset or service can be bought or sold.

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital, weighted by the proportion of each source of capital (debt and equity), used to see how much interest the company pays for every dollar it finances.

Cost of Preferred Stock

The dividend required to be paid by an entity for the funds received from issuing preferred shares, typically expressed as a percentage.