[4] Financial ratios 4.1. Salieri Music. Salieri Music maintains an operating profit margin of 10% and an asset turnover ratio of 2.5; it has assets of $1,000,000 and equity of $800,000. Its long-term debt is S450,000. Interest payments are $25,000 and the tax rate is 35%. a. What is return on assets? b. What is return on equity? c. What is return on capital? 4.2. Volkswagen. [From 2014 newspapers). The battle at the top is finally over at Volkswagen. CEO Martin Winterkorn will keep his job, while Ferdinand Piech will retire from the board. At the root of Mr. Piech's complaints was the widespread disappointment with the German automaker's performance, as reflected in its financial ratios. Although some of the 2014 ratios do reflect slight improvements with respect to 2013, they came in well below targets. In 2014, net income was 11,068 million and after-tax interest was 1,629 million. These figures were judged insufficient, given the sales number of 202,458 million. Total assets were 351,209 million in 2014 and 324,333 million in 2013. Calculate: a. operating profit margin 2014 b. Asset turnover ratio 2014 (assets at start) c. Return on assets 2014 (assets at start) d. EBIT (1 -t)