Assume the following relationships for the Caulder Corp.:
Sales/Total assets | 1.4x |
Return on assets (ROA) | 7% |
Return on equity (ROE) | 15% |
a. 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.
b. 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.
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