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question 60

Multiple Choice

[The following information applies to the questions displayed below.]
Shown below are selected data from the financial statements of Supreme Co.Dollar amounts are in millions (except for the per share data) .
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share.At year-end,the Wall Street Journal listed Supreme's capital stock as trading at $88 per share.
-200 Supreme's gross profit rate was:

• A)42.9%.
• B)57.7%.
• C)20.0%.
• D)31.7%.

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Definitions:

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may change due to exchange rate fluctuations.

Manufacturing Costs

The total expenses directly involved in producing goods, including raw material, labor, and overhead costs, crucial for determining the final price of products.

Forward Contract

A non-standardized agreement between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Wheat Price

The cost per unit of wheat, which can fluctuate based on market conditions, supply and demand, and external economic factors.