Question
Profit Margin and Debt Ratio: Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.8 Return on assets (ROA) 4% Return
Profit Margin and Debt Ratio: Assume you are given the following relationships for the Haslam Corporation:
| Sales/total assets | 1.8 |
| Return on assets (ROA) | 4% |
| Return on equity (ROE) | 7% |
1a. Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
1b.Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
1c.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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Managerial Finance
Authors: Alan Parkinson
1st Edition
0750618264, 978-0750618267
