Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of sales. For the period, the firm paid $8,500 in interest. The tax rate is 34 percent. What is the profit margin? Select one: a. 20.00 percent b. 12.38 percent O C. 13.20 percent d. 18,75 percent

Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of sales. For the period, the firm paid $8,500 in interest. The tax rate is 34 percent. What is the profit margin? Select one: a. 20.00 percent b. 12.38 percent O C. 13.20 percent d. 18,75 percent

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Question

d. it bores the shareholders.
Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of sales. For the period, the
firm paid $8,500 in interest. The tax rate is 34 percent. What is the profit margin?
Select one:
a. 20.00 percent
b. 12.38 percent
C. 13.20 percent
d. 18.75 percent
e. 14.02 percent

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