Question: 8. Problem 4.11 Click here to read the eBook: Profitability Ratios RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.2x Return

 8. Problem 4.11 Click here to read the eBook: Profitability Ratios

8. Problem 4.11 Click here to read the eBook: Profitability Ratios RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.2x Return on assets (ROA) 4% Return on equity (ROE) 14% a. Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. % b. Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %

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