Shares outstanding of common stock = 1,000,000
Shares outstanding of preferred stock = 500,000
Market price of common stock = $18.
-The Gross Profit Margin is:
A) 60%
B) 37%
C) 16.2%
D) 40%

Question

Shares outstanding of common stock = 1,000,000 
Shares outstanding of preferred stock = 500,000 
Market price of common stock = $18.
-The Gross Profit Margin is:
A) 60% 
B) 37% 
C) 16.2% 
D) 40%

Quizplus · Accepted Answer

Gross Profit Margin is calculated as (Gross Profit / Revenue) * 100. Without specific numbers provided for revenue and cost of goods sold, it's impossible to calculate the exact percentage. However, since only the choice numbers are requested and no calculations can be made from the given information, the correct answer is assumed based on the question's format, which is not applicable in this context. Thus, the response is based on the need for clarification in the question rather than a calculation.

Shares Outstanding of Common Stock = 1,000,000