Question: Problem - Du Pont Analysis - Loreal Cosmetics has a 5% operating profit margin and the company's asset turnover ratio is 2. a. Calculate the

Problem - Du Pont Analysis - Loreal Cosmetics has a 5%

Problem - Du Pont Analysis - Loreal Cosmetics has a 5% operating profit margin and the company's asset turnover ratio is 2. a. Calculate the company's Return on Asset (ROA)? (Be sure to round your answer to the nearest two decimal places.) ROA 10.00% b. What is the Return on Equity (ROE) of the company with a debt-to-equity ratio of 1, interest and tax payments of $8,400 each, and EBIT of $22,000? (Intermediate computations should not be rounded. Your answer should be rounded to two decimal places.) ROE 7.65 %

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