Keller Cosmetics maintains an operating profit margin of 8.50% and a sales-to-assets ratio of 3.90. It has assets of $600,000 and equity of $400,000. Assume that interest payments are $40,000 and the tax rate is 34%.

1. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)
2. b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.)

Keller Cosmetics maintains an operating profit margin of 8.50% and a sales-to-assets ratio of 3.90. It has assets of $600,000 and equity of $400,000. Assume that interest payments are $40,000 and the tax rate is 34%. a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.)