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In2016, the Allen Corporation had sales of $62 million, total...

In​ 2016, the Allen Corporation had sales of $62 ​million, total assets of $47 ​million, and total liabilities of $16 million. The interest rate on the​ company's debt is 5.6 ​percent, and its tax rate is 35 percent. The operating profit margin is 10 percent.

a. Compute the​ firm's 2016 net operating income and net income.

b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​ firm's liabilities.)

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