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Net profit divided by net sales gives the net profit margin, also called:
AReturn on rent
BReturn on loans
CReturn on stock
DReturn on sales
Answer & Solution
Correct answer: D. Return on sales
1. It measures earning power.
2. Higher values are better.
3. It is also called return on sales.
_Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._
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