Answer:
a-1 expands normal worse
EBIT 59890 53000 41340
equity 395600 395600 395600
ROE 15.14% 13.40% 10.45%
a-2
% change 1.74% -2.95%
b-1 EBIT 59890 53000 41340
equity 200600 200600 200600
debt 195000 195000 195000
ROE 29.86% 26.42% 20.61%
b-2
% change 3.44% -5.81%
c-1 EBIT 59890 53000 41340
tax (21%) 12576.90 11130 8681.40
NPAT 47313.10 41870 32658.60
equity 395600 395600 395600
ROE 11.96% 10.58% 8.26%
c-2
% change 1.38% -2.32%
c-3 EBIT 59890 53000 41340
tax (21%) 12576.90 11130 8681.40
NPAT 47313.10 41870.00 32658.60
equity 200600 200600 200600
debt 195000 195000 195000
ROE 23.59% 20.87% 16.28%
c-4
% change 2.72% -4.59%
Explanation:
Market to book ratio = market value per share / book value per share
1.0 = (395600/8600)/ book value per share
book value per share = 46/1.0
=46
equity = shares * book value per share
= 8600*45
= $395600
ROE = profit at the end / equity
