You know the following information about companies ABC and Xz: ABC 0,28 0,12 unknown 1,60...
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You know the following information about companies ABC and Xz: ABC 0,28 0,12 unknown 1,60 xyz 0,42 ROE net profit margin asset turnover 1,4 equity multiplier unknown Question 3.1: (15 points) Compute unknown values in the table? Net profit margin of XYZ? Equity multiplier of ABC? Question 3.2 (15 points) f company ABC has 100 euro of equity, what should be the debt level of ABC? 3.34 16 points) Company ABC wants to reach 42% of ROE, like company XYZ, by changing the debt influencing the equity multiplier. What should be the new equity multiplier have ROE equal to 0.42? and, hence. for company ABC in order to Question 3.4: (10 points What is the new level of debt of company ABC? By how many euro debt should raise
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