Tally Ho Inn has annual sales of $737,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $7,900 in interest. What is the profit margin if the tax rate is 35 percent? a) 12.46 percent b) 12.95 percent c) 13.33 percent

Tally Ho Inn has annual sales of $737,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $7,900 in interest. What is the profit margin if the tax rate is 35 percent? a) 12.46 percent b) 12.95 percent c) 13.33 percent

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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Provide this question solution general finance

Tally Ho Inn has annual sales of $737,000. Earnings before interest
and taxes is equal to 21 percent of sales. For the period, the firm
paid $7,900 in interest. What is the profit margin if the tax rate is
35 percent?
a) 12.46 percent
b) 12.95 percent
c) 13.33 percent

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