question archive BMMI Group of Bahrain has a ROE of 18
BMMI Group of Bahrain has a ROE of 18
Subject:FinancePrice:2.86 Bought7
BMMI Group of Bahrain has a ROE of 18.7%, an Equity multiplier of 2.53 times, sales of BD 2,750,000 and a Total assets turnover of 2.7 times. So, what is the BMMI's Net profit?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
| Formula: | Dupont Analysis | = | Net Profit Margin * Asset Turnover * Equity Multiplier | |
| Given: | ROE | 18.70% | ||
| Asset Turnover | 2.7 Times | |||
| Equity Multiplier | 2.53 Times | |||
| Sales | BD 27,50,000 | |||
| 18.70% | = | X * 2.7 * 2.53 | ||
| Therefore: | Net Profit Margin | = | 2.74% | |
| Net Profit | = | 75281.8 |
