
Essentials Of Investments
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ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Assume the following relationships for the Caulder Corp.:
1.8x
Sales/Total assets
Return on assets (ROA)
Return on equity (ROE)
5.0%
12.0%
Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate
calculations. Round your answers to two decimal places.
Profit margin:
Debt-to-capital ratio:
%
%
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