eBook Problem Walk$-$Through

Profit Margin and Debt Ratio

Assume you are given the following relationships for the Haslam Corporation:

Sales$/$total assets $1\mathrm{.}7$

Return on assets $($ROA$)4\%$

Return on equity $($ROE$)7\%$

Calculate Haslam's profit margin and liabilities$-$to$-$assets ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Profit margin:

$2\mathrm{.}35$

$\%$

Liabilities$-$to$-$assets ratio:

$\%$

Suppose half of its liabilities are in the form of debt. Calculate the debt$-$to$-$assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.

$\%$