Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest expense and currently pays 35% of its operating profits in taxes and P200 per year in preferred dividends, then what is Vhea’s net profit margin?
Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest expense and currently pays 35% of its operating profits in taxes and P200 per year in preferred dividends, then what is Vhea’s net profit margin?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vhea Corp has an operating profit of P1,200 produced from P9,800 in
sales. If Vhea has no interest expense and currently pays 35% of its
operating profits in taxes and P200 per year in preferred dividends, then
what is Vhea’s net profit margin?
A. 10.20%
B. 7.96%
C. 7.96%
D. 5.92%
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