The following table shows selected financial data, in millions, for Edi's Electronics Stores. The company's s tax rate is 35%. Calculate the operating profits margin for the firm. (sample answer: 25.69%)

Ex.)

c. Return on assets = operating profit/Assets

Federal Stores: operating profit/Assets =12.6/50=25.20% Sara Togas: operating profit/Assets =4.65/20=23.25%

Operating profits=(after tax interest pmt + net income)=(1-T)*Int+NI

Federal Stores: (1-T)*Int+NI =(1-.35)*4+10=12.6

Sara Togas: (1-T)*Int+NI =(1-.35)*1+4=4.65

	SALES		INTEREST PAYMENT	NET INCOME	ASSETS AT START OF YEAR
Electronics Stores		200	10	25	100