Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 4.11 assume the following relationships for the ca

4.11 Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.9× Return on assets (ROA) 5.0% Return on equity (ROE) 9.0% Calculate...

90.2K

Verified Solution

Question

Finance

4.11

Assume the following relationships for the Caulder Corp.:

Sales/Total assets1.9×
Return on assets (ROA)5.0%
Return on equity (ROE)9.0%

Calculate Caulder's profit margin and debt-to-capital ratioassuming the firm uses only debt and common equity, so total assetsequal total invested capital. Do not round intermediatecalculations. Round your answers to two decimal places.

Profit margin:   %

Debt-to-capital ratio:   %

Answer & Explanation Solved by verified expert
3.5 Ratings (594 Votes)
Given Return on assets ROA 005 Return on Equity ROE 009 Profit margin Net income sales Return on Assets ROA Net income total assets Net income Total assets 005 So total assets Net income 005 Sales    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Programming
1.2K views

/******************************************************************************** * ...

Chemistry
1.2K views

Discuss differences in ordering of the aluminum in the tetrahedral site of each of the potassium...

Mechanical Engineering
1.2K views

Briefly Discuss the attributes (max of three) of Product lifecycle Stages in Design and Manufacturing. Please limit...

Finance
1.2K views

You had a $1,800 balance last month after your payment on your credit card. You charged one...

Accounting
1.2K views

Financial Statement Analysis The financial statements for Nike, Inc., are available at the Appendix C link...

Biology
1.2K views

Which of the cells in this image shows type O blood Anti A Anti B...

Physics
1.2K views

P123 The distance between the plates of a plane capacitor is d and the area...

Algebra
1.2K views

Determine the solution of the simultaneous nonlinear equationsy = -x + x +0.5y + 5xy...

Accounting
1.2K views

Rong Company expects cash sales for July of $15,000, and a 20% monthly increase during...

Accounting
1.2K views

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,...

Accounting
1.2K views

design a sensor to measure a human weight using piezoelectric concept

Finance
1.2K views

Short-term financing through bank loans Big Kahuna Burger Inc. needs to take out a one-year...