eBook Problem Walk-Through

Assume the following relationships for the Caulder Corp.:

Sales/Total assets	1.5
Return on assets (ROA)	8.0%
Return on equity (ROE)	15.0%

Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.

Profit margin: %

Debt-to-capital ratio: %

2.

eBook Problem Walk-Through

Thomson Trucking has $9 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 5.25%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.