Revsines definition of roa for 2002 2001 2000 assume

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Unformatted text preview: tax rate of 22%, 24.5% and 25.5% for 2002, 2001 and 2000, respectively. (2 marks) 1b Decompose ROA into its Operating profit margin and Asset turnover components for: - 2002 - 2001 - 2000 (2 marks) 1c Using the components computed in 1a and 1b above, comment on the yearly fluctuations noted in the ROA. (2 marks) 2a Compute the average after-tax interest rate on debt for: - 2002 - 2001 - 2000 For this purpose, assume that debt comprises all liabilities and minority interests. (2 marks) 2b Compute the return on common equity (use Revsine's definition of ROCE) for: - 2002 - 2001 - 2000 (2 marks) 2c Explain whether XYZ's shareholders benefited from financial leverage? (3 marks) 3 Compute EPS for 2002: - basic - diluted (5 marks) (TOTAL FOR QUESTION 2 – 18 MARKS) 10 ACCT201 QUESTION 3 BALANCE SHEETS 31 December, 2002 & 2001 H Pte Ltd 31-Dec 31-Dec 2002 2001 $'000 $'000 S Pte Ltd 31-Dec 31-Dec 2002 2001 $'000 $'000 ASSETS Current Assets: Cash Trade receivables Other receivables and prepayments Inventories Total Current Assets 8,300 16,000 6,200 7,500 38,000 9,700 12,400 3,200 4,800 30,100 5,400 7,000 600 1,500 14,500 4,000 2,800 900 600 8,300 400 1,000 600 800 2,800 200 500 300 200 1,200 Non-current Assets: Investment in subsidiary Investment in associate Property, plant and equipment Club memberships Goodwill on consolidation Total non-current assets 5,000 800 11,400 100 17,300 5,000 8,600 100 13,700 1,600 1,600 1,200 1,2...
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