Question: FINANCE COLLEGE LEVEL1 : FInancial Analysis question 2. Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation a. Lollar

FINANCE COLLEGE LEVEL1 : FInancial Analysis question

FINANCE COLLEGE LEVEL1 : FInancial Analysis question 2. Using the DuPont method,

2. Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation a. Lollar Corporation has a profit margin of 8.0 percent and its ROA (investment) is 17.75 percent. What is its asset turnover? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Assets turnover ratio b. If Lollar Corporation has a debt-to-total-assets ratio of 70 percent, what would the firm's ROE be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity 0 c. What would happen to the ROE if the debt-to-total-assets ratio decreased to 60 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity

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