If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected SG&A expenses of $2 billion, what is the company's operating (EBIT) margin? A. 45% B. 20% C. 55% D. 80%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
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Provide answer financial accounting

If a company has projected revenues of $10 billion, a gross
profit margin of 65%, and projected SG&A expenses of $2
billion, what is the company's operating (EBIT) margin?
A. 45%
B. 20%
C. 55%
D. 80%
Transcribed Image Text:If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected SG&A expenses of $2 billion, what is the company's operating (EBIT) margin? A. 45% B. 20% C. 55% D. 80%
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