Calculate profit after tax and net profit margin

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XYZ has made plans for next year. It is estimated that the company will employ total assets of Rs 16,00,000. Half the assets (Rs. 8,00,000) will be financed by borrowed capital at an interest rate of 16 percent p.a. The direct costs for the year are estimated at Rs. 9,60,000 and all other operating expenses are estimated at Rs. 1,60,000. The goods will be sold to customers at 150 percent of the direct costs. Income tax rate is assumed to be 50 percent.

Problem 1: You are required to calculate (a) Profit After Tax (b) Net Profit Margin (c) Return on Assets (d) Asset Turnover (e) Return on Owners' Equity

Reference no: EM132728609

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