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Problem 9-13 Two firms have sales of $1 million each. Other financial information is as follows: Firm A B $210,000 $210,000 BIT Interest expense 20,000
Problem 9-13 Two firms have sales of $1 million each. Other financial information is as follows: Firm A B $210,000 $210,000 BIT Interest expense 20,000 55,000 Income tax 50,000 15,000 Debt 430,000 1,180,000 Equity 740,000 820,000 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: 21 % Firm B % 21 Net profit margins: Firm A % 14 Firm B: 14 What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A % Firm B: Return on equity: Firm A % 18.92 Firm B: 17.07
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