Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
34
Transcribed Image Text:QUESTION 34
Profit margin is equal to
A) net income divided by total assets
B) net income divided by total owners' equity
C) net income divided by sales
D) None of these
O A
OD
Expert Solution
Step 1
Net profit is the profit generated after deducting all operating and non-operating costs from the revenues generated. When it is expressed as a percentage of sales, it is known as Net Profit Margin.
It is calculated as:
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