The current net income of Sigma Inc.is $8 million,market price of the stock is $65,and sales is $50 million? Which of the following is the net profit margin of Sigma Inc.?

Question

Quizplus · Accepted Answer

Net profit margin is the ratio of net income to sales expressed as a percentage. 
Net profit margin = (Net income/Sales) x 100%

Net income of Sigma Inc. = $8 million
Sales of Sigma Inc. = $50 million

Net profit margin = (8/50) x 100% = 16%

Therefore, the best choice is C) 16%.

The Current Net Income of Sigma Inc