Question

1.1 Calculate the following ratios for Madeira Plc: Gross Profit Margin Net Profit Margin Net Asset Turnover Receivable Days Payable Days Return on Capital Employed Debt/Equity Ratio Return on Equity (12

marks) 1.2 Comment on the financial performance of Madeira Plc between the years 2019 and 2021 using the ratios above and any other financial measure you feel appropriate. (10 marks) 1.3 In 2019 the share price of Madeira was 2 AED per share. Today the share price is 5 AED per share. Critically evaluate if you believe the directors of Madeira Plc are maximising the wealth of shareholders. What other goals might the company consider.