1. A firm has assets of $1,800,000 and turns over its assets 1.5 times per year. Return on assets is 25 percent. What is its profit margin (return on sales)?2. A firm has a return on assets of 12 percent and a return on equity of 18 percent. What is the debt-to-total assets ratio?
1. A firm has assets of $1,800,000 and turns over its assets 1.5 times per year. Return on assets is 25 percent. What is its profit margin (return on sales)?2. A firm has a return on assets of 12 percent and a return on equity of 18 percent. What is the debt-to-total assets ratio?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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1. A firm has assets of $1,800,000 and turns over its assets 1.5 times per year. Return on assets is 25 percent. What is its profit margin (return on sales)?2. A firm has a return on assets of 12 percent and a return on equity of 18 percent. What is the debt-to-total assets ratio?
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