sales: 0.5 million each

Firm B EBIT $100,000 $100,000 Interest expense 40,000 60,000 Income tax 50,000 20,000 Debt 200,000 370,000 Equity 50,000 130,000 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: 20 % Firm B: 20% Net profit margins: Firm A: 2 % Firm B: 4 % What are their returns on assets and on equity? Round your answers to two decimal places, Return on assets: Firm A: 4 % Firm B: Return on equity: Firm A: 20 % Firm B: 46