Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. Ifthe return on assets is 8.5 percent.Required:What is its profit margin? (Do not round intermediate calculations. Round your answerto 2 decimal places (e.g., 32.16).)Profit margin

Calculation of Profit Margin:The profit margin is 4.72%.Excel Spreadsheet:

Answered: Dimeback Co. has total assets of…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If the return on assets is 8.5 percent. Required: What is its profit margin? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Profit margin