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XYZ company has made plans for the next year. It is estimated that the company will employ total assets of 800000, 50% of the assets
XYZ company has made plans for the next year. It is estimated that the company will employ total assets of 800000, 50% of the assets being financed by borrowed capital at an interest cost of 8 per cent per year . The direct cost for the year estimated at 480000and all other operating expenses are estimated at 80000 the goods will be sold to customers at 150 percent of the direct cost. Tax rate is assumed to be 50 per cent
Calculate:
1 Net profit margin 2 Return on assets 3 Assets turnover 4 Return on owners
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