Question

Queens Corporation (QC) has a net profit margin (NPM) of 5%, a total asset turnover of 1 , total assets of $30 million, and a book value of equity of $20 million. QC also has 2 million shares outstanding, and a market price of $20 per share.

Answer 1

The question focuses on financial analysis of Queens Corporation using metrics like net profit margin, total asset turnover, and book value of equity to evaluate its profitability and asset efficiency.

Step-by-step explanation:

The question involves an analysis of Queens Corporation's (QC) financial performance using various financial ratios. With the provided metrics, we can evaluate QC's profitability, asset efficiency, and market valuation. The net profit margin (NPM) of 5% indicates the percentage of revenue that remains as net income after all expenses are paid. The total asset turnover of 1 suggests that the company generates sales equal to its total asset value over a period. Also, given total assets of $30 million and a book value of equity of $20 million, we could delve further into ratios like return on assets (ROA) or return on equity (ROE). With 2 million shares outstanding and a market price of $20 per share, we can calculate the market capitalization and other related stock metrics.