As per the latest annual report, the following information is made available from the financial statements of ABC Inc. for the year 2019. Sales COGS EBIT EBITDA Interest Expense Net Income Total Debt Particulars Total Assets Net Fixed Assets Total Equity Current Assets Current Liabilities Cash & Cash Equivalents Accounts Receivables Inventories Accounts Payable Amount (in millions) £260,174 £161,782 £63,930 £76,477 £3,576 £55,256 £108,047 £338,516 £37,378 £90,488 £162,819 £105,718 £48,844 £22,926 £4,106 £46,236

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A: NPV = -CF0 + CF1/(1+r)1 + CF2/(1+r)2 + CF3/(1+r)3 +......... + CFN/(1+r)N Where, -CF0 is the cash…

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.