Calculate the debt ratio for the firm

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Reference no: EM131825349

1. Assume that XYZ, Inc. has:

• Debt ratio = 70%

• Net profit margin = 15%

• Return on assets (ROA) = 7.5%

Find XYZ’s Total Asset Turnover ratio. (Enter answer as a ratio – that is, do not convert to a percent).

2. Assume that your firm has ROA of 20.5%, ROE of 42% and Total Asset Turnover ratio of 3.5. Calculate the debt ratio for the firm. (Enter answer as a percent).

Reference no: EM131825349

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