Question
(Investments and Fun. Analysis) 1) Consider a firm whose total assets is 30 000 000 TL. The total debt of that company is 25 000
(Investments and Fun. Analysis)
1) Consider a firm whose total assets is 30 000 000 TL. The total debt of that company is 25 000 000. The firms sales is 5 000 000 TL and its net profit is 300 000 TL.
a) Find the profit margin, ROA and ROE of that firm.
b) Given that the sector average of profit margin is 10%, sector average of ROA is 4% and sector average of ROE is 8%; will you suggest to buy the shares of that firm in the stock market? Why or why not?
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
