What are the operating profit margins

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Question - Two firms have sales of $1.3 million each. Other financial information is as follows:

Firm

A

B

EBIT

$310,000

$310,000

Interest expense

30,000

55,000

Income tax

40,000

25,000

Debt

3,470,000

390,000

Equity

1,330,000

$1,530,000

What are the operating profit margins and the net profit margins for these two firms?

What are their returns on assets and on equity?

Reference no: EM132188557

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