Answer the following

a.

Claire's Cosmetics maintains a net profit margin of 8.92% and a total asset turnover ratio of 1.4. Calculate the return on assets (ROA) of the firm. f its debt-equity ratio is 36%, long-term debt is $24,000, interest payments and taxes are each $4,700, and EBIT is $27,000, what is its return on equity (ROE)? Note: The DE ratio is constructed with long-term debt in the numerator. Calculate the ratio that shows Claire's ability to meet the interest payments (times interest earned, T E ratio) The return on assets (ROA) of the firm is: Select the best choice below) O A. 10.49% O B. 12.12% O C. 12.49% O D. 12.99% O E. 10.37% The return on equity (ROE) is: Select the best choice below. O A. 25.61% O B. 22.18% O C. 22.18% O D. 26.4% O E. 27.46%