Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation.

a.	Butters Corporation has a profit margin of 7 percent and its return on assets (investment) is 25.2 percent. What is its assets turnover? (Round your answer to 2 decimal places.)

Assets turnover ratio

times

b.	If the Butters Corporation has a debt-to-total-assets ratio of 50 percent, what would the firms return on equity be? (Input your answer as a percent rounded to 2 decimal places.)

Return on equity

%

c.	What would happen to return on equity if the debt-to-total-assets ratio decreased to 35 percent? (Input your answer as a percent rounded to 2 decimal places.)

Return on equity

%