Question: Using the DuPont method, evaluate the effects on the folowing relationships for Lava Corp. Formatting requirements: Do not round intermediate calculations. Round the fin answer

 Using the DuPont method, evaluate the effects on the folowing relationships

Using the DuPont method, evaluate the effects on the folowing relationships for Lava Corp. Formatting requirements: Do not round intermediate calculations. Round the fin answer to 2 decimal places. Do not enter the \%-sign (e.g., for 34.75% enter: 34.7 a. Lava Corp's profit margin is 3.2% and the return on assets (ROA) is 14.75%. Blank\#1: What is the asset turnover? b. Assume that Lava Corp has a debt-to-asset ratio of 50%. The information prov in (a) is still valid. Blank \#2: What is the equity multiplier? Blank\#3: What is the return on equity (ROE)? c. Disregard (b) and assume that Lava Corp's debt-to-asset ratio is 65%. The information provided in (a) is still valid. Blank \#4: What is the (new) return on equity (ROE)? Blank \#5: List the three main components of the DuPont analysis and briefly describe the main insights that can be gained from the DuPont analysis

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