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Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Assume tax rate
Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Assume tax rate is 21%. a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. b. Now assume that the two companies merge. If Federal continues to sell goods worth $105 million, how will the three ratios change? Complete this question by entering your answers in the tabs below. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. Note: Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places
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