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Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. Butters Corporation has a profit margin of 5 percent and

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

  1. Butters Corporation has a profit margin of 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.

  2. If the Butters Corporation has a debt-to-total-assets ratio of 60.00 percent, what would the firms return on equity be?

    Note: Input your answer as a percent rounded to 2 decimal places.

  3. What would happen to return on equity if the debt-to-total-assets ratio decreased to 50.00 percent?

    Note: Input your answer as a percent rounded to 2 decimal places.

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