Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%

Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%

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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