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Problem 4-26 Du Pont Analysis (LO4)--corrected Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a whole percent.) ROA % If its debt-equity ratio is 1, its interest payments are $8,100 and taxes are $8,200, and b. EBIT is $20,500, what is its ROE? (Do not round Intermediate calculations. Enter your answer as a whole percent.) ROE %

Problem 4-26 Du Pont Analysis (LO4)--corrected Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a whole percent.) ROA % If its debt-equity ratio is 1, its interest payments are $8,100 and taxes are $8,200, and b. EBIT is $20,500, what is its ROE? (Do not round Intermediate calculations. Enter your answer as a whole percent.) ROE %

Essentials Of Investments
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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Problem 4-26 Du Pont Analysis (LO4)-corrected Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a whole percent.) % ROA If its debt-equity ratio is 1, its interest payments are $8,100 and taxes are $8,200, and b. EBIT is $20,500, what is its ROE? (Do not round Intermediate calculations. Enter your answer as a whole percent.) ROE %
Transcribed Image Text:Problem 4-26 Du Pont Analysis (LO4)-corrected Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a whole percent.) % ROA If its debt-equity ratio is 1, its interest payments are $8,100 and taxes are $8,200, and b. EBIT is $20,500, what is its ROE? (Do not round Intermediate calculations. Enter your answer as a whole percent.) ROE %
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