Question
Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 4. a. What is its ROA? (Enter your answer as a
| Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 4. |
| a. | What is its ROA? (Enter your answer as a whole percent.) |
| ROA | _____ % |
| b. | If its debt-equity ratio is 1, its interest payments are $8,500 and taxes are $9,000, and EBIT is $22,500, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.) |
| ROE | _____% |
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Contemporary Quantitative Finance
Authors: Carl Chiarella, Alexander Novikov
2010th Edition
3642034780, 978-3642034787
