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(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $65 million, total assets of $42 million, and total liabilities of $22 million. The interest rate on the company's debt is 6.1 percent, and its tax rate is 35 percent. The operating profit margin is 10 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.) (Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share total shares outstanding) of $1,338,000. Furthermore, the firm's income statement for the year just ended has a net income of $542,000, which is $0.275 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 20.61 . a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares