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mercedes, company has the following quarterly financial information. 4th quarter 3rd quarter 2nd quarter 1st quarter sales revenue $ 931,800 $ 941,300 $ 939,600 $ 947,400 cost of goods sold 306,000 318,600 318,200 323,400 operating expenses 249,200 260,600 258,800 262,900 interest expense 4,350 4,350 4,350 4,250 income tax expense 85,800 88,700 88,700 91,200 average number of common shares outstanding 800,530 795,564 797,170 810,500 stock price when q4 eps released $ 24 required: a. calculate the gross profit percentage for each quarter. b. calculate the net profit margin for each quarter. c. calculate the earnings per share (eps) for each quarter. d. calculate the price/earnings ratio at the end of the year.

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Based on the fact that Mercedes company has the following quarterly financial information, we calculated the following:

To calculate the gross profit percentage, net profit margin, and earnings per share (EPS) for each quarter, you can use the following formulas:

Gross profit percentage = (Sales revenue - Cost of goods sold) / Sales revenue

Net profit margin = (Net income / Sales revenue)

EPS = Net income / Average number of common shares outstanding

To calculate the price/earnings ratio (P/E ratio) at the end of the year, you can use the following formula:

P/E ratio = Stock price / EPS

a. Gross Profit Percentage:

4th Quarter: 67.3%

3rd Quarter: 66.3%

2nd Quarter: 66.4%

1st Quarter: 66.2%

b. Net Profit Margin:

4th Quarter: 8.4%

3rd Quarter: 7.6%

2nd Quarter: 7.7%

1st Quarter: 7.5%

c. Earnings Per Share (EPS):

4th Quarter: $1.11

3rd Quarter: $1.07

2nd Quarter: $1.07

1st Quarter: $1.05

d. Price/Earnings Ratio:

Price/Earnings Ratio = Stock Price / Earnings Per Share

Price/Earnings Ratio = $24 / $1.11 = 21.6

Learn more about Profit Percentages here:

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