Question

Assume the following relationships for the Caulder Corp.:

Sales/Total assets	2.1x
Return on assets (ROA)	4%
Return on equity (ROE)	15%

1. Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places.
   
   %
   
2. Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places

Answer 1