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1. Which of the following statements is incorrect? a. The net operating profit after taxes (NOPAT) = EBIT / (1 - Tax Rate). b. In

1. Which of the following statements is incorrect?

a. The net operating profit after taxes (NOPAT) = EBIT / (1 - Tax Rate).

b. In general, higher fixed asset turnover ratios indicate more efficient usage of the assets and are therefore preferred to lower ratios.

c. Times Interest Earned = EBIT / Interest Expense.

d. Operating Profit Margin = Net Operating Profit / Sales.

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