Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 1. a.What is its ROA? (Enter your answer as a whole percent.) ROA % b.If its debt-equity ratio is 1, its interest payments are $9,700 and taxes are $11,400, and EBIT is $28,500, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.) ROE %

Operating profit margin is 6% Asset turnover ratio is 1 Debt to equity ratio is 1 Interest payment…

Answered: Keller Cosmetics maintains an operating…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of 1.

a.	What is its ROA? (Enter your answer as a whole percent.)

ROA

b.	If its debt-equity ratio is 1, its interest payments are $9,700 and taxes are $11,400, and EBIT is $28,500, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.)

ROE

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