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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 5.0
Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation. a. Lollar Corporation has a profit margin of 5.0 percent and its ROA (investment) is 22.50 percent. What is its asset turnover? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) 5 ints Asset turnover ratio 4.5 b. If Lollar Corporation has a debt-to-total-assets ratio of 55 percent, what would the firm's ROE be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity 0.50 c. What would be the ROE, if the debt-to-total-assets ratio decreased to 50 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity 0.45 %
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