Profit Margin and Debt Ratio Assume you are given the following relationships fo
ID: 2636705 • Letter: P
Question
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
1) Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
%
2) Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
%
3) Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
%
1) 1.33%
2) 77.78%
Please calculate 3rd one.
Sales/total assets 1.5 Return on assets (ROA) 2% Return on equity (ROE) 9%Explanation / Answer
ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)= (Net Profit/Equity)
Return on Assets
=
Net Profit Margin
Return on Assets
=
Net Profit Margin
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.