a) Pavan Limited has made plans for the year 2022-23. It is estimated tha the Company will employ total assets of 25,00,000; 30% of asset. being financed by debt at an interest cost of 9%p.a. The direct cost fa the year are estimated at 15,00,000 and all other operating expense are estimated at 2,40,000. The sales revenue is estimated at 22,50,000. Tax rate is assumed to be 50%. Required to calculate: Net profit margin (ii)Return on assets
a) Pavan Limited has made plans for the year 2022-23. It is estimated tha the Company will employ total assets of 25,00,000; 30% of asset. being financed by debt at an interest cost of 9%p.a. The direct cost fa the year are estimated at 15,00,000 and all other operating expense are estimated at 2,40,000. The sales revenue is estimated at 22,50,000. Tax rate is assumed to be 50%. Required to calculate: Net profit margin (ii)Return on assets
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 17P: Athenian Venues Inc. just reported the following selected portion of its financial statements for...
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![a) Pavan Limited has made plans for the year 2022-23. It is estimated that
the Company will employ total assets of 25,00,000; 30% of assets
being financed by debt at an interest cost of 9%p.a. The direct cost for
the year are estimated at 15,00,000 and all other operating expenses
are estimated at 2,40,000. The sales revenue is estimated at
22,50,000. Tax rate is assumed to be 50%. Required to calculate: (i)
Net profit margin (ii)Return on assets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb25ff0d1-9051-4cf8-a1b5-dbad924c57f5%2F6028b16c-df86-450c-96bf-d966701f2454%2F06udkcf_processed.png&w=3840&q=75)
Transcribed Image Text:a) Pavan Limited has made plans for the year 2022-23. It is estimated that
the Company will employ total assets of 25,00,000; 30% of assets
being financed by debt at an interest cost of 9%p.a. The direct cost for
the year are estimated at 15,00,000 and all other operating expenses
are estimated at 2,40,000. The sales revenue is estimated at
22,50,000. Tax rate is assumed to be 50%. Required to calculate: (i)
Net profit margin (ii)Return on assets
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