You are given the following relationships for a company: Sales/total assets 1.5x Return of assets 3% Return on equity 8% What is the profit margin and the debt ratio?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 28MCQ
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What is the profit margin and the debit ratio ?

You are given the following relationships for a company:
Sales/total assets 1.5x
Return of assets 3%
Return on equity 8%
What is the profit margin and the debt ratio?
Transcribed Image Text:You are given the following relationships for a company: Sales/total assets 1.5x Return of assets 3% Return on equity 8% What is the profit margin and the debt ratio?
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