Computing the debt-to-assets ratio

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Reference no: EM131937101

Question: Assume you are given the following relationships for the Haslam Corporation:

Sales/total assets                   1.5

Return on assets (ROA)            4%

Return on equity (ROE)             7%

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.

Reference no: EM131937101

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