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A Firm's Profit Margin When Ignoring the Effects of Financing

Question 14

Multiple Choice

A firm's profit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How much did the firm pay in taxes?


A) $50,000
B) $300,000
C) $350,000
D) $500,000

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