Calculate the? firm operating return on assets

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Question - In? 2016, the Allen Corporation had sales of 70?million, total assets of 44 ?million, and total liabilities of 23 million. The interest rate on the? company's debt is 5.5 ?percent, and its tax rate is 35 percent. The operating profit margin is 11 percent.

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

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

Reference no: EM133147393

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