1. Doublewide Dealers has an ROA of 10 percent, a 2 percent profit margin, and a return on equity equal to 15 percent. What is the company's total assets turnover? What is the firm's equity multiplier?
2. Assume you are given the following relationships for the Brauer Corporation:
|
Sales/Total assets
|
1.5X
|
|
Return on assets(ROA)
|
3%
|
|
Return on equity(ROE)
|
5%
|
Calculate Brauer's profit margin and debt ratio.