Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Chapter 3.6, Problem 3.15RQ
Summary Introduction

To discuss:

Explanation for a firm having a higher gross margin and a lower net profit margin.

Introduction:

Gross profit margin: It indicates the percentage of sale revenue after the deduction of direct costs.

Net profit margin: It indicates the revenue percentage residual after all operating expenses, taxes, interest, and preferred stock dividends that have been reduced from a total revenue of the company.

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Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)

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