Question: Using the DuPont method, evaluate the following relationships for the Butters Corporation. A. Butters Corporation has a profit margin of 7 percent and its return
Using the DuPont method, evaluate the following relationships for the Butters Corporation.
A. Butters Corporation has a profit margin of 7 percent and its return on assets (investment) is 13 percent. What is its assets turnover times ratio ? Answer is to be rounded to 2 decimal places
B. If the Butters Corporation has a debt-to-total assets of 40.00 percent, what would the firm's return on equity be? Answer must be a percent rounded to two decimal places.
C. What would happen to return on equity if the debt-to- total assets ratio decreased to 30.00 percent? Answer must be a percent rounded to two decimal places
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