Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. What

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Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3.

a. What is its ROA?

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

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:09 AM

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Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. What

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a ROA asset turnover operating profit margin 3 005 015 15 b Using ...View the full answer

Fundamentals of Corporate Finance

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