Calculate firm operating return on asset in return on equity

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Reference no: EM131826063

In 2016, the Allen Corporation had sales of $69 million, total assets of $40 million, and total liabilities of $15 million. The interest rate on the company's debt is 6.4%, and it's tax rate is 35%. The operating profit margin is 11%.

a. Compute the firm's 2016 net operating income and net income.

The firm's 2016 net operating income is $______ million.

The firm's 2016 net income is $______million.

b. Calculate the firm's operating return on assets in return on equity.

The operating return on assets is______%

The return on equity is_______%

Reference no: EM131826063

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