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Two firms have sales of $1.4 million each. Other financial information is as follows: Firm A B EBIT Interest expense Income tax $ 250,000 $
Two firms have sales of $1.4 million each. Other financial information is as follows: Firm A B EBIT Interest expense Income tax $ 250,000 $ 250,000 50,000 60,000 65,000 15,000 800,000 910,000 1,130,000 1,030,000 Debt Equity 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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