Problem 4.11

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RATIO CALCULATIONS

Assume the following relationships for the Caulder Corp.:

Sales/Total assets	1.7x
Return on assets (ROA)	4%
Return on equity (ROE)	14%

1. 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. %
2. 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. %