Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume

image text in transcribed

Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Return on assets 26.00 % b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Return on equity 34.80 %

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

Make Money Like A Monster 4 Retirement

Authors: Kaiju Cash

1st Edition

979-8853287549

More Books

Students also viewed these Finance questions

Question

3. What is the advantage of writing the net ionic equation

Answered: 1 week ago