=+Question 6 Egg Limited Accountant, Mr Montague, has assembled the following data from the com-

> . . pany’s last five sets of historical cost accounts.

19X5 Net profit margin:

Profit before tax and interest 5.6%

Revenue Return on capital employed:

Profit before tax and interest 12.1%

Total assets less current liabilities Interest cover:

Profit before interest and tax 2.4 Interest Dividend cover:

Earnings ao Ordinary dividend Gearing:

Debt 60.7%

Equity 19X4 5.4%

13.4%

ae Balk 57.2%

19X3 4.9%

11.8%

“f.

1.8 44.5%

19X2 5.1%

14.2%

6.0 2.0 12.8%

~

19X1 5.3%

14.4%

aso fst, 34.6%