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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: Interest Assets at

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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: Interest Assets at Start Sales Payment Net Income of Year Federal Stores $68 Sara Togas 19 22 29.0 $118 38 $22 $28 Assume tax rate is 35% a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (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.) Federal Stores Sara Togas Sales-to-assets ratio Operating profit margin Return on assets % % % % b. Now assume that the two companles merge. If Federal continues to sell goods worth $118 million, how will the three ratios change? (Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Merged Firm Sales-to-assets ratio Operating profit margin Return on assets % % Suppose the spot rate and the 90-day forward rate on the Brazilian real are 3.3204 and 3.3413, respectively. If the three-month interest rate on dollars is 17%, what do you think is the three month interest rate on the Brazilian real? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate %

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