Problem 9-13
Two firms have sales of $1.5 million each. Other financialinformation is as follows:
| Firm | A | B |
|---|
| EBIT | $330,000 | $330,000 |
| Interest Expense | 30,000 | 60,000 |
| Income Tax | 50,000 | 15,000 |
| Debt | 1,020,000 | 420,000 |
| Equity | 1,250,000 | 2,130,000 |
What are the operating profit margins and the net profit marginsfor these two firms? Round your answers to two decimal places.
Operating profit margins:
Firm A: %
Firm B: %
Net profit margins:
Firm A: %
Firm B: %
What are their returns on assets and on equity? Roundyour answers to two decimal places.
Return on assets:
Firm A: %
Firm B: %
Return on equity:
Firm A: %
Firm B: %
