Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The company reported the following information for 20X7:

 Net sales                                                      $ 1,500,000
 Interest expense                                          $   120,000
 Income tax expense                                    $     80,000
 Preferred dividends                                    $     25,000
 Net income                                                   $   130,000
 Average assets                                             $1,100,000
 Average common stockholders' equity    $   400,000
 
Compute the profit margin ratio, the return on equity and the return on assets, rounding calculations to two decimal places