sintains an operating profit margin of 8% and asset turnover ratio of 5. Round your answer to 2 decimal places.) atio is 1, its interest payments and taxes are each $9,500, and EBIT is $27,5 ations. Round your answer to 2 decimal places.)

ENGR.ECONOMIC ANALYSIS
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Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Keler Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 5.
a. What is its ROA? (Round your answer to 2 decimal places.)
ROA
40.00 %
b. If its debt-equity ratio is 1, its interest payments and taxes are each $9500, and EBIT is $27,500, what is its ROE? (Do not round
Intermediate calculations. Round your answer to 2 decimal places.)
ROE
37%
Ces
Transcribed Image Text:Keler Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 5. a. What is its ROA? (Round your answer to 2 decimal places.) ROA 40.00 % b. If its debt-equity ratio is 1, its interest payments and taxes are each $9500, and EBIT is $27,500, what is its ROE? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) ROE 37% Ces
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