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In 2016, the Allen Corporation had sales of$60million, total assets of $49 million, and total liabilities of $15 million. The interest rate on the company's
In 2016, the Allen Corporation had sales of$60million, total assets of $49 million, and total liabilities of $15 million. The interest rate on the company's debt is 5.7 percent, and its tax rate is 35 percent. The operating profit margin is 11 percent.
Round to two decimal places:
a. Compute the firm's 2016 net operating income and net income.
Operating: $6.6 mil
Net:
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.)
ROA:
ROE:
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