Please answer all. From a company we get the following: Capital employed 20,000,000 dollar Debt / equity ratio = 3 Total income 40,000,000 dollar Total profit 4,000,000 dollar Interest costs 1,500,000 dollar Net profit 2,500,000 dollar a. Calculate the return on capital employed (Rsyss) b. Calculate the return on equity (Re) c. Show the relationship between profit margin and capital turnover rate and return on capital employed
Please answer all. From a company we get the following: Capital employed 20,000,000 dollar Debt / equity ratio = 3 Total income 40,000,000 dollar Total profit 4,000,000 dollar Interest costs 1,500,000 dollar Net profit 2,500,000 dollar a. Calculate the return on capital employed (Rsyss) b. Calculate the return on equity (Re) c. Show the relationship between profit margin and capital turnover rate and return on capital employed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer all.
From a company we get the following:
Capital employed 20,000,000 dollar
Debt / equity ratio = 3
Total income 40,000,000 dollar
Total profit 4,000,000 dollar
Interest costs 1,500,000 dollar
Net profit 2,500,000 dollar
a. Calculate the return on capital employed (Rsyss)
b. Calculate the return on equity (Re)
c. Show the relationship between profit margin and capital turnover rate and return on capital employed
d. Demonstrate the relationship between the return on equity (Re) and the return on employed capital (Rsyss) with the help of the financial exchange!
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