Martinez Corporation Reported Net Sales of $765,000 and Net Income

question 81

Multiple Choice

Martinez Corporation reported Net Sales of $765,000 and Net Income of $142,000. The profit margin is:

• A)539.0%.
• B)5.39%.
• C)81.4%.
• D)1.86%.
• E)18.56%.

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Definitions:

White Knight

A person or company making a favorable investment in or purchase of a company as a strategic defense against a hostile takeover.

Tender Offer

A public, open offer or invitation by a prospective acquirer to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a certain time.

Hostile Takeover

An acquisition attempt by one company of another that is resisted by the target company's management and board of directors.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with the care of money or property.