Highfield Corporation has assets of $2,500, sales of $2,960, operating costs of $2,475, and $500 of total current liabilities consisting of $300 of accruals and $200 of notes payable. Its long-term debt is $1,150, its common equity is $850, its interest charges are $92, and its tax rate is 40%. What is Highfield's profit margin? a. 7.39% b. 7.58% c. 7.77% d. 7.97% e. 8.17%

Highfield Corporation has assets of $2,500, sales of $2,960, operating costs of $2,475, and $500 of total current liabilities consisting of $300 of accruals and $200 of notes payable. Its long-term debt is $1,150, its common equity is $850, its interest charges are $92, and its tax rate is 40%. What is Highfield's profit margin? a. 7.39% b. 7.58% c. 7.77% d. 7.97% e. 8.17%

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 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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