What are the operating profit margins

Reference no: EM132188557

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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