Series 79: Pre-tax Profit Margin

Taken from our FINRA Investment Banking Exam

Definition of the term Pre-tax Profit Margin...

a measure of profitability similar to net profit margin, but in pre-tax dollars. It can be calculated by adding taxes paid back into the figure for net profit, and then dividing the sum by net revenues. It can be used to examine a company’s profitability apart from the effect of taxes.

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Solomon Exam Prep Study Materials for the Series 79
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