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Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a
Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2.
a. What is its ROA? (Enter your answer as a whole percent.)
b. If its debt-equity ratio is 1, its interest payments are $8,100 and taxes are $8,200, and EBIT is $20,500, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.)
NOTE: The answer to "a" is 12%. I cant figure out how to calculate ROE correctly. The asnwer to "b" is NOT 24% or 8%. Please show your work neatly.
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