Response to the following:
Problem 1. Debt Ratio
Vigo Vacations has $199 million in total assets, $4.8 million in notes payable, and $22.5 million in long-term debt. What is the debt ratio? Round your answer to two decimal places.
Problem 2. Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
Sales/total assets 2.5
Return on assets (ROA) 2%
Return on equity (ROE) 9%
Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.