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Problem 9-13 Two firms have sales of $0.8 million each. Other financial information is as follows: Firm EBIT Interest expense Income tax Debt A

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Problem 9-13 Two firms have sales of $0.8 million each. Other financial information is as follows: Firm EBIT Interest expense Income tax Debt A B $ 180,000 $180,000 20,000 65,000 45,000 30,000 1,580,000 100,000 Equity 720,000 610,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit margins: Firm A:1 Firm B: 22.5 % 22.5 Net profit margins: Firm A: Firm B: 96 What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A: 96 Firm B: % Return on equity: Firm A: Firm B:

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