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Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation. a. Lollar Corporation has a profit margin of 3.5 percent
Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation. a. Lollar Corporation has a profit margin of 3.5 percent and its ROA (investment) is 12.75 percent. What is its asset turnover? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Asset turnover ratio x b. If Lollar Corporation has a debt-to-total-assets ratio of 75 percent, what would the firm's ROE be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity % c. What would be the ROE, if the debt-to-total-assets ratio decreased to 70 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity %
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