Problem 9-13 Two firms have sales of $1.5 million each. Other financial information is as follows: FirmABEBIT$290,000$290,000Interest expense 40,000 55,000Income tax 60,000 35,000Debt 2,440,000 3,330,000Equity 1,360,000 1,670,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit margins: Firm A: % Firm B: % Net profit margins: Firm A: % Firm B: % What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A: % Firm B: % Return on equity: Firm A: % Firm B: %

Problem 9-13 Two firms have sales of $1.5 million each. Other financial information is as follows: FirmABEBIT$290,000$290,000Interest expense 40,000 55,000Income tax 60,000 35,000Debt 2,440,000 3,330,000Equity 1,360,000 1,670,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit margins: Firm A: % Firm B: % Net profit margins: Firm A: % Firm B: % What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A: % Firm B: % Return on equity: Firm A: % Firm B: %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 8PROB

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