Question
McCanns Pizza forecasts sales of $1,000,000 in 2020. The owner, Bryan McCann, will re-invest 40% of 2020 net income into buying a new pizza oven,
McCanns Pizza forecasts sales of $1,000,000 in 2020. The owner, Bryan McCann, will re-invest 40% of 2020 net income into buying a new pizza oven, and will keep the remaining 60% as a dividend. McCann would like to earn $100,000 as dividend. What net profit margin is required for McCann to invest in the oven and make his target dividend?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond
3rd Edition
0273713248, 9780273713241
