2. Performance measures (S29.2) Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio

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2. Performance measures (S29.2) Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has assets of $500,000 and equity of $300,000. Assume that interest payments are $30,000 and the tax rate is 25%.

a. What is the return on assets?

b. What is the return on equity?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 09:01 AM

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2. Performance measures (S29.2) Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio

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Principles Of Corporate Finance

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