Two firms have sales of $0.7 million each. Other financial information is as follows:

FirmAB

EBIT$150,000$150,000

Interest expense10,00080,000

Income tax55,00010,000

Debt410,0001,700,000

Equity530,000300,000

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: %

Firm B: %

Net profit margins:

Firm A: %

Firm B: %

What are their returns on assets and on equity? Round your answers to two decimal places.

Return on assets:

Firm A: %

Firm B: %

Return on equity:

Firm A: %

Firm B: %