Answer followings (a) A company has a net profit margin of 10%, an operating profit margin of 25%, total asset turnover of 1.65, assets of $160,000 and shareholders’ equity of $80,000. Calculate the company's net profit. (b)
Answer followings (a) A company has a net profit margin of 10%, an operating profit margin of 25%, total asset turnover of 1.65, assets of $160,000 and shareholders’ equity of $80,000. Calculate the company's net profit. (b)
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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Answer followings
(a)
A company has a net profit margin of 10%, an operating profit margin of 25%, total asset turnover of 1.65, assets of $160,000 and shareholders’ equity of $80,000.
Calculate the company's net profit.
(b)
Thyre limited has 11 million shares. The firm’s balance sheet shows total assets of $342 million and shareholders’ equity of $114 million, while the firm’s income statement shows net profit of $22.8 million and earnings before interest and tax of $45.6 million. If similar firms have a price-earnings ratio of 12, what price would you expect Thyre Limited’s share to sell for?
Show your answer to the nearest cent.
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