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A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...

A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals $400,000, and Total Assets equals $5,000,000. What is this firm’s Profit Margin?

a.

20%

b.

12.5%

c.

5%

d.

none of the above

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