Stuvia.com - The Marketplace to Buy and Sell your Study Material
2022
MAC2602 ASSIGNMENT 2
SEMESTER 2 SOLUTION 2022
Mr N
067 112 6850
9/16/2022
Disclaimer
any means.
Downloaded by: kenethmoyo |
, QUESTION 1
Present, in the given table format above the calculations and figures for the: TABLE
1 (option 1)
Funded by equity only
Total assets R600 million:
Equity R600 million (R400 m + R200 m)
Debt R0 million
Earnings before interest & tax (EBIT) (115 000 000 x 1,10) 126 500 000,00
-
Interest
Profit before tax 126 500 000,00
Income tax expense @ 28% - 35 420 000,00
(a) Net profit
91 080 000,00
(b) Return on assets (ROA) = Net profit/Total Assets
= 91 080 000/600 000 000
=15,1800%
(c) Return on equity (ROE) = Net profit/Equity
= 91 080 000/600 000 000
=15,1800%
TABLE 2 (option 2)
50% equity and 50% debt funding
Total assets R600 million:
Disclaimer
2022
MAC2602 ASSIGNMENT 2
SEMESTER 2 SOLUTION 2022
Mr N
067 112 6850
9/16/2022
Disclaimer
any means.
Downloaded by: kenethmoyo |
, QUESTION 1
Present, in the given table format above the calculations and figures for the: TABLE
1 (option 1)
Funded by equity only
Total assets R600 million:
Equity R600 million (R400 m + R200 m)
Debt R0 million
Earnings before interest & tax (EBIT) (115 000 000 x 1,10) 126 500 000,00
-
Interest
Profit before tax 126 500 000,00
Income tax expense @ 28% - 35 420 000,00
(a) Net profit
91 080 000,00
(b) Return on assets (ROA) = Net profit/Total Assets
= 91 080 000/600 000 000
=15,1800%
(c) Return on equity (ROE) = Net profit/Equity
= 91 080 000/600 000 000
=15,1800%
TABLE 2 (option 2)
50% equity and 50% debt funding
Total assets R600 million:
Disclaimer
