FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The gross profit margin (gross profit/sales) of
ABC, Inc. is 0.25, its operating profit margin
(EBIT/sales) is 14%, its TATO ratio is 1.50x, and
its COGS is $600,000. ABC's tax rate is 40%. If the
firm is an all-equity firm, calculate the
company's ROA and ROE.
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Transcribed Image Text:The gross profit margin (gross profit/sales) of ABC, Inc. is 0.25, its operating profit margin (EBIT/sales) is 14%, its TATO ratio is 1.50x, and its COGS is $600,000. ABC's tax rate is 40%. If the firm is an all-equity firm, calculate the company's ROA and ROE.
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