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Given the financial details of XYZ Corporation for the year ended December 31, 2023: Total Assets: $600,000 Total Liabilities: $300,000 Shareholders' Equity: $300,000 Net Income:
Given the financial details of XYZ Corporation for the year ended December 31, 2023:
- Total Assets: $600,000
- Total Liabilities: $300,000
- Shareholders' Equity: $300,000
- Net Income: $50,000
- Dividends Paid: $15,000
- Total Revenue: $300,000
- Cost of Goods Sold: $150,000
- Operating Expenses: $80,000
- Interest Expense: $5,000
- Tax Expense: $10,000
Required:
- Calculate the debt to equity ratio.
- Determine the return on assets (ROA).
- Compute the gross profit margin.
- Calculate the net profit margin.
- Determine the earnings per share (EPS) assuming 10,000 shares outstanding.
- Discuss the financial performance of XYZ Corporation based on the calculated ratios.
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