Firm operating return on assets and return on equity

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Reference no: EM131957975

In? 2016, the Allen Corporation had sales of $67 ?million, total assets of $43 ?million, and total liabilities of $ 21 million. The interest rate on the? company's debt is 5.6 ?percent, and its tax rate is 35 percent. The operating profit margin is 14 percent.

a. The? firm's 2016 net operating income is ?$______million (Round to two decimal? places.)

b. Calculate the? firm's operating return on assets and return on equity.? (Hint: You can assume that interest must be paid on all of the? firm's liabilities.)

Reference no: EM131957975

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