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Calculate return on equity for Allen Corporation given the following: The Allen Corporation had sales in 2013 of $69 million, total assets of $50 million
Calculate return on equity for Allen Corporation given the following:
The Allen Corporation had sales in 2013 of $69 million, total assets of $50 million and total liabilities of $25 million. The interest rate on the company's debt is 6.8 percent and its tax rate is 30 percent. The operating profit margin was 11.8 percent. What was the company's operating income and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt. The operating income was $ 8142000. The net income was $ 4509400. The operating return on assets was 16.3 %. The return on equity wasStep by Step Solution
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