What is its equity multiplier

Assignment Help Financial Accounting

Reference no: EM132475163

Assume the following relationships for the Caulder Corp.:

Sales/Total assets 2x

Return on assets (ROA) 4.0%

Return on equity (ROE) 13.0%

Question 1: Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.

Profit margin: %

Debt-to-capital ratio:

Henderson's Hardware has an RCA of 8%, a 5.5% pro?t margin. and an ROE of 17%.

Question 2: What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places.

Question 3: What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132475163

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