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Problem 4-11 RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.4x Return on assets (ROA) 7% Return on equity (ROE) 15%

Problem 4-11 RATIO CALCULATIONS

Assume the following relationships for the Caulder Corp.:

Sales/Total assets 2.4x
Return on assets (ROA) 7%
Return on equity (ROE) 15%

Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %

Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %

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