Ratio Calculations
Assume the following relationships for the Brauer Corp.:
Sales/total assets 2.4x
Return on assets (ROA) 4%
Return on equity (ROE) 9%
Calculate Brauer's profit margin assuming the firm uses only debt and common equity. Round your answer to two decimal places. %
Calculate Brauer's debt-to-assets ratio assuming the firm uses only debt and common equity. Round your answer to two decimal places. %