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Keller Cosmetics maintains an operating profit margin of 8.10% and a sales-to-assets ratio of 3.10. It has assets of $520,000 and equity of $320,000. Assume
Keller Cosmetics maintains an operating profit margin of 8.10% and a sales-to-assets ratio of 3.10. It has assets of $520,000 and equity of $320,000. Assume that interest payments are $32,000 and the tax rate is 34%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,892 million shares outstanding with a share price of $118. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 21%. a. Calculate the market value added. Note: Enter your answer in millions rounded to nearest whole number. b. Calculate the market-to-book ratio. Note: Round your answer to 2 decimal places. c. Calculate the economic value added. Note: Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number. d. Calculate the return on start-of-the-year capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
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