answers to Q2Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has assets of $500,000 and equity of $300,000. Assume that interest payments are $30,000 and the tax rate is 25%.a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.) Exercise n°2.Keller Cosmetics maintains an operating profit margin of 8% and asales-to-assets ratio of 3. It has assets of $500,000 and equity of$300,000. Assume that interest payments are $30,000 and the taxrate is 25%.a. What is the return on assets? (Enter your answer as a percentrounded to 2 decimal places.)b. What is the return on equity? (Enter your answer as a percentrounded to 2 decimal places.)

Name: answers to Q2Keller Cosmetics maintains an operating profit margin of
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Description: answers to Q2Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has assets of $500,000 and equity of $300,000. Assume that interest payments are $30,000 and the tax rate is 25%.a. What is the return on as

Operating profit margin= 8% Sales-to-assets ratio= 3 Assets= $500,000 Equity= $300,000 Interest…

Answered: Keller Cosmetics maintains an operating…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 11PROB

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Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has assets of $500,000 and equity of $300,000. Assume that interest payments are $30,000 and the tax rate is 25%.

a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)

b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.)

Exercise n°2.
Keller Cosmetics maintains an operating profit margin of 8% and a
sales-to-assets ratio of 3. It has assets of $500,000 and equity of
$300,000. Assume that interest payments are $30,000 and the tax
rate is 25%.
a. What is the return on assets? (Enter your answer as a percent
rounded to 2 decimal places.)
b. What is the return on equity? (Enter your answer as a percent
rounded to 2 decimal places.)

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Operating profit margin = 8.65%

Sales to assets ratio = 3.20

Assets = 630,000

Equity = 430,000

Interest payments = 43,000

Tax Rate = 40%

What Is Return on Equity??????

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