Mohammed & Co. is a Corporation with a focus on Food and Beverage manufacturing in the UAE. They are now looking to finance their new project, a restaurant chain. To raise funds they will issue shares to the public. You are required to calculate andinterpret the following ratios for two years:

a) Total Asset turnover

b) Fixed Asset turnover

c) Price to Earnings Ratio

d) Market to Book Ratio

e) Net Profit Margin

f) Gross Profit Margin

g) Dividends per share

h) Operating Return on Assets [16+8]

Mohammed & Co. currently has 60,000 shares outstanding with the dividend announced for the current year (2020) at AED 49,000 and last year (2019)the dividend announced was at AED 52,000 for the entire group.

The opening share price of Mohammed & Co. on 30thof March 2020 was AED156.7 and AED104.8 on 30thMarch 2019.

Based on the ratios calculated above, Can you conclude if Mohammed & Co. is a good investment opportunity for the prospective Shareholder? [2]

Mohammed & Co. is a Corporation with a

focus on Food and Beverage

manufacturing in the UAE. They are now

looking to finance their new project, a

restaurant chain. To raise funds they will

issue shares to the public. You are required

to calculate andinterpret the following

ratios for two years:

a) Total Asset turnover

b) Fixed Asset turnover

c) Price to Earnings Ratio

d) Market to Book Ratio

e) Net Profit Margin

f) Gross Profit Margin

g) Dividends per share

h) Operating Return on Assets [16+8]

Mohammed & Co, currently has 60,000

shares outstanding with the dividend

announced for the current year (2020) at

AED 49,000 and last year (2019)the

dividend announced was at AED 52.000

for the entire group.

The opening share price of Mohammed &

Co. on 30t of March 2020 was AED156.7

and AED104.8 on 30thMarch 2019.

Based on the ratios calculated above, Can

you conclude if Mohammed & Co. is a

good investment opportunity for the

prospective Shareholder?

[2]

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