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Keller Cosmetics maintains an operating profit margin of 8.35% and a sales-to-assets ratio of 3.60. It has assets of $570,000 and equity of $370,000. Assume
Keller Cosmetics maintains an operating profit margin of 8.35% and a sales-to-assets ratio of 3.60. It has assets of $570,000 and equity of $370,000. Assume that interest payments are $37,000 and the tax rate is 30%.
a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)
b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.)
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