Question: Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.9x Return on assets (ROA) 4% Return on equity (ROE) 11%
a. Calculate Caulder's profit margin assuming the firm uses only debt and common equity, 10 total assets equal total invested capital. Round your answer to decimal places. %
b. Calculate Causer's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. %