Question 1

An income statement has $25.5 million in sales, $13.8 million in operating costs, and $5.5 in depreciations. Interest is 10% and taxes are 35%. What is the EBIT? Please answer in units of million dollars to the closest tenth of a million as in $x.x million without entering the dollar sign or the million word.

Question 2

With sales of $269,687, total assets of $144,234, profit margin of 5%, and equity multiplier of 1.3, what would be the ROE? Convert the profit margin rate to a percent and report it to the nearest hundredth as in xx.xx % but not entering the percent sign.