Problem:
Assume you are given the following relationships for the Haslam Corporation:
• Sales/Total assets 1.2
• Return on assets (ROA) 4%
• Return on Equity (ROE) 7%
Requirement:
Question: Calculate Haslam's profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.
Note: Explain in detail.