Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 2, Problem 22P
In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11.70 billion, gross profit of $6.75 billion, and net income of $1.25 billion. Peet’s Coffee and Tea (PEET) had revenue of $372 million, gross profit of $72.7 million, and net income of $17.8 million.
- Compare the gross margins for Starbucks and Peet’s.
- Compare the net profit margins for Starbucks and Peet’s.
- Which firm was more profitable in 2011?
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In fiscal year 2021, Walmart Inc. (WMT) reported annual revenue of $572.75 billion, gross profit of $143.75 billion, and net income of $13.67 billion. Costco Wholesale Corporation (COST) had revenue of $195.9 billion, gross profit of $25.25 billion, and net income of $5.01 billion. a. Compare the gross margins for Walmart and Costco. b. Compare the net profit margins for Walmart and Costco. c. Which firm was more profitable in 2021?
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Data table
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IBM reports that, for the years 2009 and 2008, the gross profit margins are 45.72% and 44.06% respectively. Both the net profit and the gross profit margins indicated stronger financial positions for IBM from 2008 until 2010. Which one of the following equations would IBM have used to calculate the gross profit margins?
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a.
Gross profit/Sales x 100/1
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Net income/Sales x 100/1
c.
Gross profit/Net income x 100/1
d.
Sales/Gross profit x 100/1
Chapter 2 Solutions
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Ch. 2 - Prob. 1CCCh. 2 - Prob. 2CCCh. 2 - What 's depreciation designed to capture?Ch. 2 - Prob. 4CCCh. 2 -
5. what do a firm’s earning measure?
Ch. 2 - 6. What is dilution?
Ch. 2 - Prob. 7CCCh. 2 - Prob. 8CCCh. 2 - Prob. 9CCCh. 2 - What information do the notes to financial...
Ch. 2 - Prob. 11CCCh. 2 - Prob. 12CCCh. 2 - Prob. 13CCCh. 2 - Prob. 14CCCh. 2 - Prob. 15CCCh. 2 - Prob. 16CCCh. 2 - Prob. 1CTCh. 2 - Prob. 2CTCh. 2 - Prob. 3CTCh. 2 - 4. What is the purpose of the income statement?
Ch. 2 - Prob. 5CTCh. 2 - Prob. 6CTCh. 2 - Prob. 7CTCh. 2 - Prob. 8CTCh. 2 - Prob. 9CTCh. 2 - Prob. 10CTCh. 2 - Prob. 11CTCh. 2 - Prob. 1DCCh. 2 - Prob. 2DCCh. 2 - Prob. 3DCCh. 2 - Prob. 4DCCh. 2 - Prob. 5DCCh. 2 - Prob. 6DCCh. 2 - Prob. 7DCCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Consider the following potential events that might...Ch. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - In fiscal year 2011, Starbucks Corporation (SBUX)...Ch. 2 - Local co. has sales of $10 million and cost of $6...Ch. 2 - 24. If Local Co., the company in Problem 23, had...Ch. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Consider a retail firm with a net profit margin of...Ch. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38P
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