Two firms have sales of $1 million each. Other financial information is as follows: What are the

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Two firms have sales of $1 million each. Other financial information is as follows:

Firm A $150,000 $150,000 20,000 50,000 400,000 EBIT Interest expense Income tax 75,000 30,000 Debt Equity 700,000 300,00

What are the operating profit margins and the net profit margins for these two firms? What are their returns on assets and on equity? Why are they different?

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Basic Finance An Introduction to Financial Institutions, Investments and Management

ISBN: 978-1285425795

11th Edition

Authors: Herbert B. Mayo

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Question Posted: Nov 22, 2018 04:08 AM

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Two firms have sales of $1 million each. Other financial information is as follows: What are the

Question:

Firm A $150,000 $150,000 20,000 50,000 400,000 EBIT Interest expense Income tax 75,000 30,000 Debt Equity 700,000 300,000 600,000

Step by Step Answer:

Operating profit margin EBITSales Firm A 1500001000000 15 Firm B 1500001000000 15 Net profit ...View the full answer

Basic Finance An Introduction to Financial Institutions, Investments and Management

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