Sara Togas sells all its output to Federal Stores. The following table shows selected financial data,...

 

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Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Interest Assets at Start Federal Stores Sara Togas Sales $108 28 Payment $12 9 Net Income $18 12 of Year $58 24.0 Assume tax rate is 35%. a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Sales-to-assets ratio Operating profit margin Return on assets Federal Stores % % Sara Togas % % b. Now assume that the two companies merge. If Federal continues to sell goods worth $108 million, how will the three ratios change? (Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Sales-to-assets ratio Operating profit margin Return on assets Merged Firm % % Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Interest Assets at Start Federal Stores Sara Togas Sales $108 28 Payment $12 9 Net Income $18 12 of Year $58 24.0 Assume tax rate is 35%. a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Sales-to-assets ratio Operating profit margin Return on assets Federal Stores % % Sara Togas % % b. Now assume that the two companies merge. If Federal continues to sell goods worth $108 million, how will the three ratios change? (Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Sales-to-assets ratio Operating profit margin Return on assets Merged Firm % %