Question: Using the Du Pont method, evaluate the effects of the following relationships for the Lollar Corporation. (a) Lollar Corporation has a profit margin of 7.5

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

(a)

Lollar Corporation has a profit margin of 7.5 percent and its return on assets (investment) is 21.50 percent. What is its assets turnover ratio?(Enter only numeric value rounded to 2 decimal places.)

Assets turnover ratio

(b)

If the Lollar Corporation has a debt-to-total-assets ratio of 50 percent, what would the firm

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