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Almafraq Electrical Manufacturing Company is interested in investing in a new regional project beginning of 2020. There were three potential similar projects. The following financial

Almafraq Electrical Manufacturing Company is interested in investing in a new regional project beginning of 2020. There were three potential similar projects. The following financial information were available to help the company make the right decision:

Financial Information 31/12/2019

Project A

Project B

Project C

Information from the income statement in JOD:

Total revenue

10,099,000

3,816,000

1,277,550

Total expenses

9,503,000

3,618,000

1,822,748

Information from the balance sheet in JOD:

Current assets

1,946,000

1,020,000

526,549

Total assets

8,668,000

8,183,000

3,783,127

Current liabilities

2,356,000

895,000

693,809

Total liabilities

4,587,000

5,944,000

3,089,318

Total shares of common stock outstanding

225,800

389,000

168,238

The three projects are competing within the same market segment. The Chief Executive Officer (CEO) of the company is studying the financial information of the three projects but he couldnt make a decision, so he asked you, as a financial expert to analyze and interpret specific financial aspects of the projects and recommend which project the company should invest in and why?

The specific financial aspects to be analyzed are:

  • Profit Margin
  • Total Owners' Equity.
  • Current Ratio.
  • Return on Equity.
  • Debt Equity Ratio.
  • Earnings per Share.

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