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RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.2x Return on assets (ROA) 3% Return on equity (ROE) 10% Calculate Caulder's

RATIO CALCULATIONS

Assume the following relationships for the Caulder Corp.:

Sales/Total assets 2.2x
Return on assets (ROA) 3%
Return on equity (ROE) 10%
  1. 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. %
  2. 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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