Question
Please explain how to solve the following: Profit Margin and Debt Ratio Assume you are given the following relationships for the Howard Corporation: Sales/total assets
Please explain how to solve the following:
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Howard Corporation:
Sales/total assets 1.3
Return on assets (ROA) 4%
Return on equity (ROE) 6%
Calculate Howard's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round answer to two decimal places.
Profit margin:_____________%
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 answer to two decimal places.
___________________%
Thank you
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