Problem $4-26$ Du Pont Analysis $($LO$4)--$corrected

Keller Cosmetics maintains an operating profit margin of $5\%$ and asset turnover ratio of $1.$

a$.$ What is its ROA? $($Enter your answer as a whole percent.$)$

ROA $5$ Numeric Response $1.$Edit Unavailable. $5$ correct.$\%$

b$.$

If its debt$-$equity ratio is $1,$ its interest payments are $$10,000$ and taxes are $$12,000,$ and EBIT is $$30,000,$ what is its ROE? $($Do not round intermediate calculations. Enter your answer as a whole percent.$)$

ROE $123$ Numeric Response $2.$Edit Unavailable. $123$ incorrect.$\%$