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    Keller Cosmetics: calculate return on assets and return on equity.

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    Keller Cosmetics maintains a profit margin of 4 percent and a sales-to-assets ratio of 3.

    What is its return on assets?

    If its debt-equity ratio is 1.0, its interest payments and taxes are each $10,000, and EBIT is $40,000, what is the return on equity?

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    Solution Summary

    In Excel format, the response shows the calculations with narrative to arrive at the answers.