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An all-equity firm reports a net profit margin of 10% on sales of $3 million. If the tax rate is 40%, what is the pretax

An all-equity firm reports a net profit margin of 10% on sales of $3 million. If the tax rate is 40%, what is the pretax profit?

The answer is $500,000

Could you please be kind enough and show what a formula is applied and how it is calculated in detail? Thank you!

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