Prior to the outbreak of Covid-19 in Germany, the Berlin based brewing company Federbrau was very…

Prior to the outbreak of Covid-19 in Germany, the Berlin based brewing company Federbrau was very successful throughout the European continent. During 2019, the brewer reported net sales of € 415 million, 6% up from 2018. Internal auditors also determined its operating profit (EBIT) amounted to € 40 million in the same period. As part of their expansion strategy, they devoted substantial investments in net working capital, the company’s net book value increased from € 215 million to € 230 million, while net fixed assets remained stable at € 130 million. The company managed to maintain its capital structure with a debt to equity ratio of 0.75 and a 40% Equity Ratio.
Based on German corporate income tax of 25% and interest rate of 5.0%, calculate the following;
• Net Profit Margin