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What are the operating profit margins and net profit margin

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Two firms have sales of $0.6 million each. Other financial information is as follows:

Firm                            A                     B
EBIT                   $ 140,000     $ 140,000

Interest expense    10,000          60,000

Income tax              45,000         25,000

Debt                   1,660,000           210,000

Equity                      470,000             340,000

Problem 1: What are the operating profit margins and the net profit margins for these two firms?

Reference no: EM132969646

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