Question: Make use of the financial statement data provided in Problem 10 for Safety-First, Inc. A. Calculate the operating profit margins and the NOPAT margins in
A. Calculate the operating profit margins and the NOPAT margins in 2009 and 2010 for Safety-First, Inc. What changes occurred?
B. Calculate the operating return on assets (or the venture’s basic earning power) using year-end balance sheet information for both 2009 and 2010. Describe what happened in terms of operating return performance.
C. Did the venture benefit from using interest-bearing debt in the form of bank loans and long-term debt in 2009 and 2010?
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