Two firms have sales of $1.5 million each. Other financial information is as follows:

Firm A B

EBIT $ 320,000 $ 320,000

Interest expense 30,000 65,000

Income tax 65,000 30,000

Debt 3,750,000 3,320,000

Equity 1,880,000 1,180,000

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: %