Mohammed & Co. is a Corporation with a focus on Food and Beverage manufacturing in the...

 

  

Transcribed Image Text:

Mohammed & Co. is a Corporation with a focus on Food and Beverage manufacturing in the UAE. They are now looking to finance their new project, a restaurant chain. To raise funds they will issue shares to the public. You are required to calculate, interpret and analyze the following ratios for two years: a) Total Asset turnover b) Fixed Asset turnover c) Price to Earnings Ratio d) Market to Book Ratio e) Net Profit Margin f) Gross Profit Margin g) Dividends per share h) Operating Return on Assets [16+8+4] Mohammed & Co. currently has 60,000 shares outstanding with the dividend announced for the current year (2020) at AED 49,000 and last year (2019) the dividend announced was at AED 52,000 for the entire group. The opening share price of Mohammed & Co. on 30th of March 2020 was AED156.7 and AED104.8 on 30th March 2019. Based on the ratios calculated above. Can you conclude if Mohammed & Co. is a good investment opportunity for the prospective Shareholder? [2] Mohammed & Co. is a Corporation with a focus on Food and Beverage manufacturing in the UAE. They are now looking to finance their new project, a restaurant chain. To raise funds they will issue shares to the public. You are required to calculate, interpret and analyze the following ratios for two years: a) Total Asset turnover b) Fixed Asset turnover c) Price to Earnings Ratio d) Market to Book Ratio e) Net Profit Margin f) Gross Profit Margin g) Dividends per share h) Operating Return on Assets [16+8+4] Mohammed & Co. currently has 60,000 shares outstanding with the dividend announced for the current year (2020) at AED 49,000 and last year (2019) the dividend announced was at AED 52,000 for the entire group. The opening share price of Mohammed & Co. on 30th of March 2020 was AED156.7 and AED104.8 on 30th March 2019. Based on the ratios calculated above. Can you conclude if Mohammed & Co. is a good investment opportunity for the prospective Shareholder? [2]

Answer rating: 100% (QA)

Here are the calculations and analysis a Total Asset Turnover 2019 SalesTotal Assets AED10milAED5mil ... View the full answer