Question: Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation a. Butters Corporation has a profit margin of 8

 Using the Du Pont method, evaluate the effects of the following

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation a. Butters Corporation has a profit margin of 8 percent and its return on assets (investment) is 1775 percent. What is its assets turnover? (Round your answer to 2 decimal places.) Assets turnover ratio 2.22 times b. If the Butters Corporation has a debt-to-total-assets ratio of 70.00 percent, what would the firm's return on equity be? (Input your answer as a percent rounded to 2 decimal places.) Return on equity c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? (Input your answer as a percent rounded to 2 decimal places.) Return on equity

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