Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)

Using Table 2. Calculate for 2021 the:

  • operating profit margin [2]
  • return on capital employed (ROCE) [3]
  • gearing ratio. [3]
(b)[12]

You may draw on your results from 4(a) and other information. Recommend whether TK should finance the automated delivery vehicle (ADV) trial through a new share issue. Justify your recommendation.

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