Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started