You have the following financial information on Red Tiger Resto for the most recent fiscal year: dividends paid were $10,000; interest expense was $23,450; sales were $277,204; operating costs were $161,295; and depreciation expense was $23,301. If the tax rate is 35 percent, what is the firms profit margin (in percent)?

Points: 1

1. 13.87

2. 16.22

3. 17.46

4. 20.25