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1.Barnes Appliances had net sales for $10 million dollars, net earnings for $450,000 dollars, total assets for $4 million dollars and total equity for $2
1.Barnes Appliances had net sales for $10 million dollars, net earnings for $450,000 dollars, total assets for $4 million dollars and total equity for $2 million dollars. With this information answer the next questions:
a)What is the profit margin?
b)What is the return on assets?
c)What is the return on equity?
d)At the present time, the debt to assets ratio is 50%. If this changes to 60%, What is the new return on equity? To answer this question, use the DuPont formula.
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