12)

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation.

a.	Butters Corporation has a profit margin of 6 percent and its return on assets (investment) is 14 percent. What is its assets turnover?(Round your answer to 2 decimal places.)

Assets turnover ratio

times

b.	If the Butters Corporation has a debt-to-total-assets ratio of 50.00 percent, what would the firms return on equity be?(Input your answer as a percent rounded to 2 decimal places.)

Return on equity

%

c.	What would happen to return on equity if the debt-to-total-assets ratio decreased to 45.00 percent?(Input your answer as a percent rounded to 2 decimal places.)

Return on equity

%