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company XYZ in 2015 is given : sales €500000, costs €332000 depreciation expense €120000 Interest expense...

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Finance

company XYZ in 2015 is given : sales €500000, costs €332000depreciation expense €120000 Interest expense €60000 dividends€16000 tax rate 35 percent

a) given this information prepare XYZ income statement

b) calculate XYZ profit margin

c) If company XYZ has total asset €250000 and equity multiplier2.5 what is return on equity, what is return on equity (ROE) basedon DU point identity.

d) discus the component of Du point identity

Answer & Explanation Solved by verified expert
3.8 Ratings (665 Votes)
a b Income statements and profit marginsXYZ Income StatementAmount in EURSales500000Costs332000Earning before Depreciationinterest and tax    See Answer
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company XYZ in 2015 is given : sales €500000, costs €332000depreciation expense €120000 Interest expense €60000 dividends€16000 tax rate 35 percenta) given this information prepare XYZ income statementb) calculate XYZ profit marginc) If company XYZ has total asset €250000 and equity multiplier2.5 what is return on equity, what is return on equity (ROE) basedon DU point identity.d) discus the component of Du point identity

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