Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What is its ROA? (Enter your answer as a whole percent.) ROA 20 % If its debt-equity ratio is 1, its interest payments are $9,600 and taxes are $11,200, and b. EBIT is $28,000, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.) ROE 15.56 %
Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What is its ROA? (Enter your answer as a whole percent.) ROA 20 % If its debt-equity ratio is 1, its interest payments are $9,600 and taxes are $11,200, and b. EBIT is $28,000, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.) ROE 15.56 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of
6.
a. What is its ROA? (Enter your answer as a whole percent.)
ROA
20 %
If its debt-equity ratio is 1, its interest payments are $9,600 and taxes are $11,200, and
b. EBIT is $28,000, what is its ROE? (Do not round intermediate calculations. Enter
your answer as a whole percent.)
ROE
15.56 %
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