RATIO CALCULATIONS Assume the following relationships for the Brauer Corp.: Sales/Total assets 1.5 Return on assets (ROA)

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RATIO CALCULATIONS Assume the following relationships for the Brauer Corp.:

Sales/Total assets 1.5×

Return on assets (ROA) 3.0%

Return on equity (ROE) 5.0%

Calculate Brauer’s profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital.

AppendixLO1

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