Explore BrainMass

Explore BrainMass

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

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:22 pm ad1c9bdddf
    https://brainmass.com/business/accounting/57280

    Solution Summary

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

    $2.19

    ADVERTISEMENT