You are preparing profitability analysis for JANA company. With regard to profit margin ratio, which of the following statements is incorrect? St of Select one: O a. The profit margin ratio is computed by dividing net sales by net income. O b. The higher the profit margin ratio the more sales dollars end up as profit. c. The profit margin ratio shows how much net income a business earns on every $1.00 of sales. Od. The profit margin ratio focuses on the profitablity of a company and is often reported in the You are considering investment in ABC company and you are given the following selected information for 2020: Market price per share of $25.00 common stock of Earnings per share on common stock $ 1.25 Which of the following statements is correct? Select one: O a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2020 b. The market price per share and the earnings per share are not statistically related to each other. o. The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2020 d. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of learnings per share at the end of 2020