Answered: DTO, Inc., has sales of $32 million,…

DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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Question

DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million.

a.	If the profit margin is 6 percent, what is the net income?

b.	What is the ROA?

c.	What is the ROE?

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