Du Pont Analysis Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover ratio of 3. a. What is the ROA? b. If its debt-equity ratio is 1, its interst payment and taxes are each $8,000, and the EBIT is $20,000, what is the ROE?

Du Pont Analysis Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover ratio of 3. a. What is the ROA? b. If its debt-equity ratio is 1, its interst payment and taxes are each $8,000, and the EBIT is $20,000, what is the ROE?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 10PROB

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Du Pont Analysis

Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover ratio of 3.

a. What is the ROA?

b. If its debt-equity ratio is 1, its interst payment and taxes are each $8,000, and the EBIT is $20,000, what is the ROE?

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