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Profit Margin & Debt/Capital Ratios Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.2x Return on assets (ROA) 3% Return on equity (ROE)
Profit Margin & Debt/Capital Ratios
Assume the following relationships for the Caulder Corp.:
| Sales/Total assets | 1.2x |
| Return on assets (ROA) | 3% |
| Return on equity (ROE) | 9% |
- CalculateCaulder'sprofitmargin and debt/capital ratios.
- %
- 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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Mechanics of Materials
Authors: Russell C. Hibbeler
10th edition
134319656, 978-0134319650
