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Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5
Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5 percent and its return on assets (investment) is 16.25 percent. What is its assets turnover? Note: 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 firm's return on equity be? Note: 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? Note: Input your answer as a percent rounded to 2 decimal places. Return on equity %
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