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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 d) 15.29 percent e) 16.11 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 d) 15.29 percent e) 16.11 percent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 d) 15.29 percent e) 16.11 percent
Transcribed Image Text: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 d) 15.29 percent e) 16.11 percent
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