Using the provided information answer the following questions. The following results relate to Life Healthcare Ltd, a private hospital group 0 companies, for the year ended 30 September 2012: 2012 2011 Sales R10 937m R9 812 Net Profit R1 743m R1 492 Total assets R9 256m R8 468 Equity R3 941m R3 518 5.1 What does it mean if a business is solvent? 5.2 Describe the 3 key drivers of return on equity for a company. In other words, describe the three areas that a company focus on in order to maximise shareholders' wealth? 5.3 Calculate the asset efficiency (return on assets) for Life Healthcare Ltd for 2012. Provided that in (2011: 1.16 times). 5.4 Comment on the movement in asset efficiency between the two years, and briefly indicate the reasons for the change.

Using the provided information answer the following questions. The following results relate to Life Healthcare Ltd, a private hospital group 0 companies, for the year ended 30 September 2012: 2012 2011 Sales R10 937m R9 812 Net Profit R1 743m R1 492 Total assets R9 256m R8 468 Equity R3 941m R3 518 5.1 What does it mean if a business is solvent? 5.2 Describe the 3 key drivers of return on equity for a company. In other words, describe the three areas that a company focus on in order to maximise shareholders' wealth? 5.3 Calculate the asset efficiency (return on assets) for Life Healthcare Ltd for 2012. Provided that in (2011: 1.16 times). 5.4 Comment on the movement in asset efficiency between the two years, and briefly indicate the reasons for the change.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 13QE

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