Problem 3-8

Profit Margin and Debt Ratio

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

Sales/total assets 2.2

Return on assets (ROA) 4%

Return on equity (ROE) 7%

Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.

%

Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.

%

Suppose half of Haslam's 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.

%