hapter $3$

i

Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation.

a$.$ Lollar Corporation has a profit margin of $80$ percent and its ROA $($investment$)$ is $1775$ percent. What is its asset turnover? $($Do nf round intermediate calculations. Round the final answer to $2$ decimal pleces.$)$

Asset turnover ratio $$ x

b$.14$ Lollar Corporation has a debt$-$to$-$total$-$assets ratio of $30$ percent, what would the firm's ROE be$?($Do not round intermediate calculations. Round the final enswer to $2$ decimal places.$)$

Return on equity $\%$

c$.$ What would be the ROE, if the debt$-$to$-$total$-$assets ratio decreased to $25$ percent? $($Do not round intermediate calculations. Ro the final answer to $2$ decimal places.$)$

Return on equity $\%$