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Given the financial details of STU Ltd. for the year ended December 31, 2023: Total Assets: $1,000,000 Total Liabilities: $500,000 Shareholders' Equity: $500,000 Net Income:
Given the financial details of STU Ltd. for the year ended December 31, 2023:
- Total Assets: $1,000,000
- Total Liabilities: $500,000
- Shareholders' Equity: $500,000
- Net Income: $80,000
- Dividends Paid: $25,000
- Total Revenue: $500,000
- Cost of Goods Sold: $200,000
- Operating Expenses: $150,000
- Interest Expense: $7,000
- Tax Expense: $10,000
Required:
- Calculate the debt equity ratio.
- Determine the operating cash flow.
- Compute the gross profit ratio.
- Calculate the net profit margin.
- Determine the earnings per share (EPS) considering 20,000 shares outstanding.
- Analyze the financial performance and solvency of STU Ltd.
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