Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation.

a. Lollar Corporation has a profit margin of 6.0 percent and its ROA (investment) is 22.25 percent. What is its asset turnover? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Asset turnover ratio _

b. If Lollar Corporation has a debt-to-total-assets ratio of 40 percent, what would the firms 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 25 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Return on equity _