If a company reports a 7 percent profit margin, a total asset turnover of 1.8, and a

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If a company reports a 7 percent profit margin, a total asset turnover of 1.8, and a total debt ratio of 0.72, what are its ROA and ROE?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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Question Posted: Jun 17, 2015 03:26 AM

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If a company reports a 7 percent profit margin, a total asset turnover of 1.8, and a

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ROA Profit margin x Asset turnover 007x 18 0126 or 126 Total Debt ratio TDR Total Deb...View the full answer

Corporate Finance

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