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QUESTION 9 [5 marks] Details of three companies are as follows: Net margin % Asset turnover Financial leverage Company A 5 4 2 Company B
QUESTION 9 [5 marks]
Details of three companies are as follows:
|
| Net margin % | Asset turnover | Financial leverage |
| Company A | 5 | 4 | 2 |
| Company B | 6 | 6 | 1.1 |
| Company C | 9 | 3 | 1.5 |
Company B has a retention ratio of 40%.
Required:
- Determine the company with the highest Return On Assets (ROA).
- Compute the dividend growth rate using PRAT model.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
