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Gross profit margin

Definition:

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Intrinsic value of a firm

The present value of a firm's expected future net cash flows discounted by the required rate of return.

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