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Two firms have sales of $1.2 million each. Other financial information is as follows: A B Firm EBIT Interest expense Income tax Debt Equity $

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Two firms have sales of $1.2 million each. Other financial information is as follows: A B Firm EBIT Interest expense Income tax Debt Equity $ 270,000 $ 270,000 50,000 55,000 65,000 35,000 510,000 4,940,000 780,000 1,060,000 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: %

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