Question: The following attachment is the annual report of NESTLE NIGERIA PLC. You are required to per form comparative financial analysis of the company for the

The following attachment is the annual report of NESTLE NIGERIA PLC.

You are required to per form comparative financial analysis of the company for the two years by calculating the following ratios :

a. Break even point and Safety margin

b. Degree of operating leverage and Degree of Financial leverage

c. Success probability factor

d. Return on Equity and Return on Assets

e. Altman's Z-score

f. Du-pont ratios - decomposition of performance

g. Economic value added

e. The Price Earning ratio (PER)

f. The share price projection

Based on your analysis above will you recommend NESTLE shes for a long term investment ?

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1 Break even point and safety margin Break even point is the level of sales at which a company makes neither a profit nor a loss Break even point can be calculated using the following formula Break ev... View full answer

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