Question 1

For an all equity firm with a total asset turnover of 1, what profit margin would achieve a target ROE of 0.12? 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. You would need to calculate the rate to four places before multiplying by 100 to convert to a percent.

Question 2

A balance sheet shows current assets as $5,850, accrued wages and taxes as $990, accounts payable as $933, and notes payable as $971. How much is the net operating working capital?Answer to the nearest cent as in xx.xx without entering the dollar sign.