Shown Below Are Selected Data from the Financial Statements of Noble

question 56

Multiple Choice

Shown below are selected data from the financial statements of Noble Computers. (Dollar amounts are in millions, except for the per share data.)
$$\begin{array} { | c | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 3,500 \\\hline \text { Cost of goods sold } & 1,890 \\\hline \text { Operating expenses } & 675 \\\hline \text { Profit } & \$ 115 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 540 \\\hline \text { Average total assets } & \$ 4,400 \\\hline\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share. At year end, the Wall Street Journal listed Noble's shares as trading at $81 per share.
-Refer to the above data. Noble's gross profit rate was:

• A) 18%.
• B) 46%.
• C) 50%.
• D) Some other amount.

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Definitions:

Genetic Monogamy

A form of monogamy based on genetic tests which confirm that a pair of animals mate exclusively with each other.

Evolutionary Fitness

The ability of an organism to survive and reproduce, thereby passing on its genes to the next generation.

Social Monogamy

A form of monogamy observed in animal behavior where individuals pair bond to cooperate in the rearing of offspring, even if not exclusively sexually monogamous.

Confusion Effect

A phenomenon by which a predator's ability to pick out individual prey is hampered by a large group of potential targets.