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X Co. has made plans for the next year. It is estimated that the company will employ total assets...

X Co. has made plans for the next year. It is estimated that the company will employ total assets of ` 8,00,000; 50 per cent of the assets being financed by borrowed capital at an interest cost of 8 per cent per year. The direct costs for the year are estimated at `4,80,000 and all other operating expenses are estimated at ` 80,000. the goods will be sold to customers at 150 per cent of the direct costs. Tax rate is assumed to be 50 per cent. You are required to CALCULATE: (i) net profit margin; (ii) return on assets; (iii) asset turnover and (iv) return on owners’ equity.
 

Apr 10 2020 Read more Less More

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