Question
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets = 1.2 Return on assets (ROA) =
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
Sales/total assets = 1.2
Return on assets (ROA) = 4%
Return on equity (ROE) = 9%
- 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.
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
