Question
Profit Margin and Debt Ratio Assume you are given the following relationships for a Corporation: Sales/total asset 1.5 Return on assets (ROA)3% Return on equity
Profit Margin and Debt Ratio
Assume you are given the following relationships for a Corporation:
Sales/total asset 1.5
Return on assets (ROA)3%
Return on equity (ROE)6%
Calculate profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
%
Calculate liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
%
Suppose half of the 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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