Calculate the operating return on assets

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Use the financial statement data for the Bike-With-Us Corporation provided in Problem 3 to make the following calculations:

A. Calculate the operating return on assets.

B. Determine the effective interest rate paid on the long-term debt.

C. Calculate the NOPAT margin. How does this compare with the results for the net profit margin?

Did the owners benefit from the use of interest-bearing long-term debt?

Reference no: EM131123458

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