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Assume you are given the following relationships for the Warner Corporation: Sales / Total assets 1.1 Return on assets (ROA) 2.35% Return on equity (ROE)

Assume you are given the following relationships for the Warner Corporation: Sales / Total assets 1.1 Return on assets (ROA) 2.35% Return on equity (ROE) 4.35%

Calculate Warners debt-to-capital ratio, assuming it uses only debt and common equity financing.

Selected Answer:

a. 20.14%

b. 185.11%

c. 54.02%

d. 85.11%

e. 45.98%

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