Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I NEED TO KNOW THE RETURN ON ASSETS, ROUNDED TO TWO DECIMAL PLACES. Two firms have sales of $1.3 million each. Other financial information is

image text in transcribed

I NEED TO KNOW THE RETURN ON ASSETS, ROUNDED TO TWO DECIMAL PLACES.

Two firms have sales of $1.3 million each. Other financial information is as follows: Firm EBIT Interest expense Income tax Debt Equity 200,000 200,000 30,000 70,000 55,000 30,000 2,110,000 170,000 770,000 830,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places Operating profit margins Firm A: Firm B Net profit margins: Firm A: Firm B What are their returns on assets and on equity? Round your answers to two decimal places Return on assets: 15.38 15.38 8.85 7.69 Firm A: Firm B: Return on eauity 8.85 7.70

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Day Trading Truths And Lies

Authors: Joe Zordi

1st Edition

1542885256, 978-1542885256

More Books

Students also viewed these Finance questions

Question

How do theories of economics change over time?

Answered: 1 week ago