Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has

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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. Interest payments are $30,000 and the tax rate is 35%.

a. What is the return on assets?

b. What is the return on equity?

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 09:53 AM

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Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has

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Principles of Corporate Finance

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