All of the following statements regarding profit margin are true except:
A. Profit margin is also called return on sales.
B. Profit margin reflects the percent of profit in each dollar of revenue.
C. Profit margin is calculated by dividing net income by net sales.
D. Profit margin can be used to compare a firm's performance to its competitors.
E. Profit margin is not a useful measure of a company's operating results.
Answer: E
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In perceptual maps, retailers that are closer to an ideal point are evaluated
A. more favorably by the suppliers. B. less favorably by the consumers. C. more favorably by the producers. D. less favorably by the suppliers. E. more favorably by the consumers.
Describing how a service stands out from its competitors would be what aspect of the marketing mix?
a. product b. price c. promotion d. place
Describe the five major problems in laws reflecting ethical standards.
What will be an ideal response?
Townsend Corporation declared a 1-for-1 stock split to all common stock shareholders of record on December 31, 20X3. Townsend reported current E&P of $400,000 and accumulated E&P of $1,000,000. The total fair market value of the stock distributed was $500,000. Regina Williams owned 1,000 shares of Townsend common stock, with a tax basis of $200 per share ($200,000 total). The fair market value of the common stock was $300 per share on December 31, 20X3. What is Regina's income tax basis per share in the new and existing common stock she owns in Townsend, assuming the distribution is tax-free?
What will be an ideal response?