Shares outstanding of common stock = 1,000,000
Shares outstanding of preferred stock = 500,000
Market price of common stock = $18.
-The Net Profit margin is:
A) 16.2%
B) 60%
C) 13.7%
D) 37%

Question

Shares outstanding of common stock = 1,000,000 
Shares outstanding of preferred stock = 500,000 
Market price of common stock = $18.
-The Net Profit margin is:
A) 16.2% 
B) 60% 
C) 13.7% 
D) 37%

Quizplus · Accepted Answer

The Net Profit Margin is a financial metric that indicates the percentage of revenue that remains as profit after all expenses are deducted. It is calculated by dividing the net profit by the total revenue and multiplying by 100 to get a percentage. The correct answer, 13.7%, suggests that after all expenses are deducted from the total revenue, 13.7% of the revenue remains as profit.

Shares Outstanding of Common Stock = 1,000,000