jump-it corporation has a margin of safety of $272,000. the company sold 100,000 units this year. if the company sells each unit for $17, the margin of safety percentage is blank . multiple choice question. 6.25% 2.72% 14.3% 16%



Answer :

Jump-it corporation has a margin of safety of $272,000. the company sold 100,000 units this year. if the company sells each unit for $17, the margin of safety percentage is 16%.

(Justification: Margin of safety equals $272k/(100k x $17) = 16%.)

The notion of margin of safety dictates that an investor only buys securities when their market price is substantially lower than their actual worth. The margin of safety is the differential when a security's market price is much less than your appraisal of its inherent value.

A corporation is a business or group of persons given legal status by the state to do business as a single unit. Non-stock corporations are businesses that aren't authorized to issue stock; as a result, people (or other entities) who have joined the company and are referred to as members are regarded the corporation's proprietors.

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