Problem 4-26 Du Pont Analysis (LO4)

Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4.

a. What is its ROA? (Round your answer to 2 decimal places.)

ROA

%.

b. If its debt-equity ratio is 1, its interest payments and taxes are each $8,200, and EBIT is $21,000, what is its ROE? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

ROE

%.