Fama's French Bakery has a return on assets (ROA) of 20 percent and a return on equity (ROE) of 30 percent. Fama's total assets equal total debt plus common equity (that is, there is no preferred stock). Furthermore, we know that the firm's total assets turnover is 2. What is Fama’s profit margin? What is Fama’s total debt ratio?

Answer rating: 100% (QA)

We can use the DuPont formula to calculate Famas profit margin ROE Net Income Total Equity Net Incom... View the full answer