Q. No.4 a. c. Define the following terms and solve the mathematical part to express your understanding of Ratio Analysis. You will get 1 mark for solving the problem and 1 mark for the definition. What is net profit margin? The Treet Corp. had earnings before taxes of $50,000 and sales of $1,000,000. If it is in the 35% tax bracket, calculate its net profit margin? b. What is shareholder equity? A firm has sales of $750,000 and total assets of $30,000, and a net profit margin of 6%. Its return on equity 20%. Calculate its shareholder's equity? What is debt to asset ratio? A firm has sales of $12,500, total assets of $3000, and a debt/equity ratio of 1.5. If its return on equity is 12 percent. Making use of shareholder's equity calculated in (b) above, find its net income and debt to asset ratio. d. What do you understand by return on investment The return on equity is 20%, and the shareholder's equity is 35% of the total assets. The worth of total assets is Rs. 75 million. What is the return on investment? The total assets of a corporation worth Rs. 50 million. You have found that the firm's return on equity is 15 percent and net profit is Rs. 25 million. Its debt ratio is 0.35. Find out the total debt and debt to asset ratio of the corporation. e