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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

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 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 70 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Return on equity
%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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