Multiple Choice
Bed Bug Inn has annual sales of $137,000.Earnings before interest and taxes are equal to 5.8 percent of sales.For the period, the firm paid $4,700 in interest.What is the profit margin if the tax rate is 34 percent?
A) −2.43 percent
B) 1.56 percent
C) 3.33 percent
D) −5.29 percent
E) −6.11 percent
Correct Answer:
Verified
Correct Answer:
Verified
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