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 relationships for the Butters Corporation a. Butters Corporation has a profit margin of 8 percent and its return on assets (investment)is 17 75 percent What is ts assets turnover? Round your answer to 2 decimal places.) Assets turnover ratio times b. If the Butters Corporation has a debt-to-total-assets ratio of 70.00 percent, what would the firm's retun 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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