Question 4 (Marks: 27) South African companies measure their results by certain ratios. The following mining companies returned the following ratios and margins: Extract A Anglos Jarmony Afro Minerals Return on Assets 9% 6% 10% Profit Margin 2.6% 3.3% 8% Asset Turnover 3.4 times 1.9 times 1.3 times Diggin' X has been making waves in the mining industry and shows potential. Its 2019 results returned the following information: Extract B ZAR Capital Invested in Assets 250,000 Sales Revenue (Net sales) 500,000 Net Profit 120,000 Required Rate of Return/Cost of Capital 12% Average assets 215 000 Expenses 380 000 Q.4.1 With regards to extract A: Q.4.1.1 Explain the meaning of the ratios listed and explain what the ratio results reveal about each mining company? (9) (2) Q.4.1.2 Which mining company is the best performer? Explain why you have chosen a particular measure from those to reach this conclusion. Q.4.1.3 Provide two of the four perspectives included in the balance score (1) card Q.4.2 (2) With regards to extract B: Q.4.1.1 Calculate the following for Diggin' X: a) Net Profit Margin. b) Return on Investment (ROI). c) Residual Income (RI). d) Expense ratio and explain the results in your own words e) Asset turnover ratio and explain the results in your own words (3) 3)