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Use the intomation provided below to answer the following questions. (Answers to ratios must be expressed to two decimal places.) 21 Compare and comment on
Use the intomation provided below to answer the following questions. (Answers to ratios must be expressed to two decimal places.) 21 Compare and comment on the profitability of both companies by using the following ratios: 21.1 Retum on capital employed (4 marks) 2.12 Profi margin (Net profit margin) (4 marks) 22 Calculate the eamings retention ratio of both companies and explain how shareholders can benefir trom a higher retention ratio. (6 marks) 23 Compare the two companies regarding the amount of debt that each company uses to finance its assets (as a pencentage). (4 marks) 24 Suggest TWO (2) ways in which KUM Limited can improve its gross profit margin ratio, without increasing its selling prices. (2 marks) NFORMATION Exracts for the year ended 31 December 2022 of the Statement of Comprehensive income and Statement of Financial Posibon are given below for wo companies ve. KLM Limuted and ZAP Limited Note: All the income and expenses of both companies are included in the figures above
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