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What is its asset turnover

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Question - Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation.

Required -

a. Lollar Corporation has a profit margin of 5.0 percent and its ROA (investment) is 16.25 percent. What is its asset turnover?

b. If Lollar Corporation has a debt-to-total-assets ratio of 60 percent, what would the firm's ROE be?

c. What would be the ROE, if the debt-to-total-assets ratio decreased to 50 percent?

Reference no: EM132645377

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