PROBLEM 3-8 PROFIT MARGIN AND DEBT RATIO (CENGAGE).
Problem 3-8
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
Sales/total assets
1.4
Return on assets (ROA)
3%
Return on equity (ROE)
8%
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.
