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How Is Profit Margin Calculated? Discuss Its Use in Analyzing

question 152

Essay

How is profit margin calculated? Discuss its use in analyzing a company's performance.


Definitions:

Par

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Face Value

The nominal value printed on a financial instrument, such as a bond or a stock certificate.

Semiannual Interest

Interest on a loan or bond that is calculated and paid twice a year.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument, representing the amount due at maturity.

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