a) A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What is the value of Net Profit? R What is the ROE? b) A firm has net working capital of R714.15, current liabilities of R2276.81 & inventory of R803.44. What is the current ratio? What is the quick ratio?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Topic Video
Question

This is 1 question that has 2 sub-parts. Please answer both a and b. Please provide a detailed working out.

NB!!! Round off all answers to 2 decimal places.

a)
A firm has sales of R23, total assets of R39 and total debt of R7.
The net profit margin is 4%.
What is the value of Net Profit? R
What is the ROE?
b)
A firm has net working capital of R714.15, current liabilities of R2276.81 & inventory of
R803.44.
What is the current ratio?
What is the quick ratio?
Transcribed Image Text:a) A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What is the value of Net Profit? R What is the ROE? b) A firm has net working capital of R714.15, current liabilities of R2276.81 & inventory of R803.44. What is the current ratio? What is the quick ratio?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education